If you’re new to the NFT space, you’ve probably come across the word “raffle” and weren’t quite sure what it meant. Actually, it’s simple— a raffle, or raffling, is a regular giveaway where lucky winners are chosen at random.

So, a raffle is a mechanism through which NFT projects grant access to their ecosystems. Imagine: a new project launches, and instead of just opening the mint for everyone, they hold a lottery on a special platform. Participants register, and then the system selects the winners completely randomly. Those who win get a spot on the whitelist—this gives them the privilege to mint NFTs earlier than others or buy them at a discounted price.

Platforms that run these giveaways work on principles similar to IDO and ICO platforms like DAO Maker or Coinlist, but they are specifically designed for NFT projects. This is an intermediary layer between the project and the community, ensuring fair distribution of access.

In practice, participating in a raffle is a chance to get in early on a project while prices are still low. And if the project takes off, you can then sell the NFT on a marketplace for a good profit. That’s why people actively look for raffles and keep an eye on announcements of new giveaways in the crypto community.