NFTs, NFT Marketing, Strategy

Looking at the “Holding Back” Inventory Strategy for NFT Drops

A follow-up to my piece on the Valhalla drop.

Photo by Ashin K Suresh on Unsplash

A few months back, I put out a piece on reserved NFTs. And by that I meant holding back a portion of NFTs from the general mint for later use (marketing promos and the like). You can find that article here:

That all said, I didn’t cover some additional expansions of that idea. I was reminded of this after publishing my piece the other day on the Valhalla drop, which I still find rather fascinating (and which I was a tad critical of) for various reasons.

At the time, my understanding was that Valhalla’s supply was 9,000 tokens. But I’ve since read that their supply is actually 10,000. The final 1,000, I’ve read, has been held back and will be auctioned off separately.

This is an interesting strategy — one I’d not encountered before. It’s different from the reasons I’d mentioned in that article above about reserved NFTs, as that article mentioned various specific uses for the held-back NFTs. In this case, though, the main “use” is in building additional revenue for the drop by minting later, possibly at a higher price.

It’s a bold strategy, really. And I tend to think it’s a win-win, when you think about it. That’s because:

  • The initial offering is lower, which makes the NFTs more initially scarce, which may drive early demand.
  • A lower supply is easier to sell out.
  • If a set does not sell out the 90%, then the holding back of the final 10% (as has been done here apparently) affects nothing. (Not that a 90/10 split is the only way to do it. You could do 80/20, 85/15, 90/10, or whatever you like.)
  • If a set becomes popular and sells out (as this one did), then the bottom line for the set is increased revenue beyond whatever would have come in via the initial mint price. (In the case of Valhalla, I’ve already gone on record as viewing the 0.5…