The NFT market has, since its start, seen the launch of several applications and projects. A majority of these projects or applications represent real-world applications and projects. Artworks are now made into NFTs, the same as real-estate properties represented on the blockchain. Undoubtedly, NFT is a technology that is changing the world as we know it.
NFTs are digital assets that are stored permanently on the blockchain. Most often, they are used to represent real-world assets or to indicate assets. While there are several compelling use cases, the most popular types are profile pictures (PFP) and Artwork NFTs.
One of the compelling use cases is the use of NFTs in lottery gaming systems. NFT lottery platforms give users opportunities to win prizes from the draws. This is in addition to users’ chances to make passive income even if they didn’t win the draw. One way to describe how the NFT lottery works: exciting.
Understanding NFT lotteries is as simple as legacy lottery services. And with many fraudulent actors and platforms, safety is the word you want to hold onto. But this article solves that for you, with many more vital information.
If you are wondering what NFT lotteries are, the platforms that offer them and how to be a part of them, then this article is for you. Let’s get started.
What are NFT Lotteries?
To understand what NFT lotteries are, it is essential to know how traditional lotteries work. Lotteries are present in every country. It is one of the ways through which people hope to achieve immense fortune quickly. In traditional lotteries, people buy tickets for a chance of winning a huge sum of money. The prize-winning ticket is then selected from a random pool of numbers, and the ticket owner is announced as the winner.
NFT lotteries work in a similar way but with a little difference. While people buy tickets to win money, cars, or other items in traditional lotteries, only the winners get any real value. But in the NFT lottery ecosystem, those who lost out on the draw can mint their tickets into NFTs and sell them. Also, NFT lottery participants can join the lottery by buying tokens or an NFT, unlike money used in traditional lotteries.
NFT lotteries became popular and widespread after the NFT peaked in late 2021 and 2022. But for many, the rise in NFT popularity also meant that NFTs became too expensive. Thus, NFT lotteries became one of the ways they could get an NFT and maybe flip for profit, use an asset, or flex on social media networks.
How does NFT lottery work?
Even though NFT lotteries share similarities with traditional lotteries, it doesn’t mean they work similarly. Like traditional lotteries, NFT lotteries have their rules which vary depending on the NFT platform one is using.
Generally, rules such as purchasing tickets or buying a token are the norm. Also, users may be required to play a game or participate in sweepstakes on social media networks to get a ticket. The most popular is getting a ticket by playing a game. But for most users, that might not be a convenient option. So instead, NFT lottery platforms allow them to buy tokens to participate.
A winner is eventually selected through a randomized process where tickets are selected from a pool. The winner is then awarded the NFT and other benefits that may come with winning the lottery.
Are NFT lotteries legal?
In most countries, there are no laws on NFTs and NFT lotteries. Regardless, checking if lottery games and platforms are legal in your country is important. In countries like the US with leading crypto laws, there may be laws on NFT lotteries.
NFT lotteries may be banned in countries with strict cryptocurrency laws. However, it may be legal if NFTs are allowed and defined separately from cryptocurrencies. Nonetheless, before using any platform, you should research the lottery laws in your country and what they allow and ban.
In most cases, NFT lotteries will be legal in most countries. Even if your country is strict on crypto and NFTs, you could still participate in NFT lotteries, all thanks to the decentralized nature of the blockchain.
What are the top 5 NFT Lottery Websites/Platforms?
There are many platforms and websites that offer NFT lotteries. Most crypto and NFT gaming platforms now offer an NFT lottery in which users can participate and win prizes. The rules that apply to the lottery differ per platform. In the same way, the reward, prizes, and benefits vary too.
Here’s our list of the best NFT lottery gaming platforms in 2023.
1. Lucky Block
Lucky Block is one of the most widely used crypto gaming platforms. The platform built on the Binance Smart Chain offers a wide range of games and crypto lotteries. Along with other games and lotteries, Lucky Block also provides its users a chance to participate in NFT lotteries.
Users can participate in the platform’s competition, daily draws, or NFT jackpots. All three have different rules which guide players. However, to participate on the platform, users must buy Lucky Block’s native token LBLOCK. The token is what is used to purchase tickets for the NFT lotteries.
One exciting feature of Lucky Block is that the ticket used for the lottery is also minted as an NFT. Therefore, users who don’t win may keep the ticket or put it for sale on NFT marketplaces. Users can purchase the ticket on Launchpad.xyz
There are daily NFT lottery draws, Lottery competitions, and NFT jackpots. Winners are announced at the end of every round; prizes may be NFTs, cryptocurrencies, cash, or real-world assets such as cars.
2. ApolloX
ApolloX is a decentralized crypto exchange for derivative trading. Before January 2023, the platform used to offer centralized trading features. ApolloX allows users to trade and stake cryptocurrencies to earn rewards. The platform also features an online lottery service where users can earn free NFT prizes.
The ApolloX NFT lottery game allows users to enter for lotteries and win prizes. To participate, users must buy the platform’s native token APX. The token is then used to purchase tickets for the lottery draws.
Typically, each NFT lottery game prize is about $7,250, depending on the market value of the APX. Users can also mint their tickets into NFTs, which they can later flip for profit.
3. Quanta
The third platform on our list of best NFT lottery game platforms is Quanta. The Ethereum-based platform offers a wide option of games with exciting rewards and prizes. The platform claims it is the first blockchain-licensed lottery in the world.
Quanta aims to provide transparent lottery services to its users. Thanks to its licensed status, users can put aside fears of Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) violations while using the platform. Quanta features the classic lotto game “Classic 6/46,” where players select 6 numbers between 1 and 49.
However, the licensed status of the platform means it has stringent Know-Your-Customer (KYC) rules. That means anyone using the platform has to provide information about themselves. Thus, Quanta may not be the best option for users who would like to play anonymously.
4. DeLott
DeLotty is an NFT lottery platform offering a unique experience to its users. The platform aims to bring lotteries into the entire Web 3.0 by integrating the metaverse. Users on DeLotty also get value beyond just playing games or participating in lottery draws.
DeLotty also has an NFT lottery collection with some exciting features. The NFT collection goes beyond just giving users a chance to mint their tickets. NFTs within the collection are randomly generated and give users a stake in the platform. Holders of the NFT get a share of the ticket from DeLotty’s lotteries. In addition, they can also breed the NFTs and flip them for profit.
5. HogLotter
HogLottery is a lottery service platform fit for those looking for a higher winning chance. The platform is one of the best NFT lottery sites, with a weekly NFT jackpot where users win NFTs. However, the jackpot is only available to Solana-based wallets. That means anyone who wants to participate must get a Solana-enabled crypto wallet.
Participating in the lottery HogLottery is straightforward. After connecting a Solana-enabled wallet to the platform, a user will then buy a ticket and wait for the draw. The winner of the draw is then announced.
While its prizes may not be as huge as those of other platforms, winners get NFTs with good potential to rise in value. The winning probability is not as low as seen on other platforms. Most draws often see from 100 to 500 entrants, which gives a higher chance than platforms with over 1000 to 10,000 entrants.
How to safe while using NFT lottery platforms
As seen in other parts of the NFT ecosystems, there are fraudulent actors in the NFT lottery platforms. They often use the platform as a scam tool to defraud unsuspecting users. Therefore, it is vital to take caution while exploring the platforms. Here are some safety tips for you.
Avoid sketchy platforms
Due to the popularity of NFT lotteries, there are now many platforms with NFT lottery services. However, few of those platforms are used to defraud users. In most cases, the winner is chosen before tickets are sold to the public. With no one to confirm, no one would discover if the selection process was fair and clean.
To avoid those platforms, you can join NFT lotteries on social media platforms such as Twitter and Discord. You will find more information on NFT lotteries, upcoming events, and legit platforms.
False winning promises
Winning a lottery is based on luck, and there’s no way to determine who will win. Some Lottery services sometimes have tokens that give an extra edge. But that also only increases winning chances.
When someone tells you that he can get you to win the lottery, it is often a scam. What usually follows is the person asking you for more money than you would have paid for a ticket. These scams are rampant in NFT lottery communities on social media platforms such as Twitter and Discord.
Minimize your activity on the platform
NFT lotteries are a form of gambling. They are equally as addictive as legacy lottery games. People struggling with gambling addictions or recovering from it may easily get addicted. It is, therefore, essential to limit your activities on these lottery platforms. Also, ensure your financials are not affected because of the lotteries.
Confirm if NFT lotteries are allowed in your country
As mentioned before, some countries may restrict or ban NFT lottery activities. In countries like America, there may be more restrictions and regulations than an outright ban. The Government may ban such activities in countries with strict and harsh crypto laws.
Hence, it would be best if you researched the lottery laws in your country and whether they are banned or regulated.
Conclusion
NFT lotteries are fast becoming one of the most popular use cases of NFTs. For many, it is a faster and easier way to make money and get top NFTs or other benefits.
Outside of the crypto ecosystem, NFT lotteries are also changing traditional lotteries. It is clear now that as the NFT market gains ground, NFT lotteries will become more prominent and popular. As a result, conventional lottery platforms may be forced to look into NFT lotteries and see how they can be a part of it.
Frequently Asked Questions
What are NFTs?
NFTs, also called Non-Fungible Tokens, are digital assets stored on the blockchain. They are permanent, unchangeable, and often used to represent ownership of an item.
What are NFT lotteries?
NFT lotteries are ways by which people can buy tickets to win NFTs, cryptocurrencies, or other prizes, such as cars. One exciting feature is that some platforms mint the ticket purchased to participate in the lotteries. That means even if a user doesn’t win the lottery, they can sell the ticket as an NFT.
How do you enter an NFT lottery?
Entering an NFT lottery isn’t as complicated as you may think. In most cases, once you purchase the token or NFT, you are already in the competition. Once NFTs within the ticket collection are all purchased, the winner is selected and announced.