NFT sniping is the practice of swiftly identifying and acquiring newly listed or undervalued NFTs, typically using bots, before others have the chance to do so.

The primary aim of NFT snipers is to take advantage of market inefficiencies and obtain potentially valuable NFTs at a lower cost.

NFT sniping has sparked discussions within the NFT community regarding its ethical implications and potential impact on the market.

What is NFT Sniping?

NFT sniping is the practice of swiftly identifying and acquiring newly listed or undervalued non-fungible tokens (NFTs) before others have the chance to do so. This tactic is primarily used with the intention of reselling the NFT at a higher price.

NFT snipers often utilize automated tools or bots to monitor NFT marketplaces for new listings, price drops, or rare and valuable items, allowing them to act faster than human users.

Goals of NFT Snipers

The primary aim is to take advantage of market inefficiencies and obtain potentially valuable NFTs at a lower cost. By acting quickly, snipers can acquire NFTs that may be in high demand or have been undervalued by the seller, creating substantial resale profit potential.

Some snipers are motivated by the thrill of the hunt, while others approach it as a full-time profession.

How NFT Sniping Differs from Traditional Trading

Traditional strategies (e.g., stocks/commodities) rely on analyzing market trends and historical data. NFT sniping prioritizes speed in a volatile market.

NFTs' uniqueness makes valuation harder than traditional assets. The less-regulated NFT market also presents higher risks/rewards due to potential manipulation.

Tools and Techniques

• Custom bots: Programmed to scan marketplaces for specific criteria (rarity/price) and auto-purchase.

• Browser extensions: Provide real-time alerts and analytics like pricing trends and rarity scores.

Ethical Concerns

While legal, critics argue NFT sniping creates inequality by favoring tool-equipped users over individual collectors, potentially distorting markets. Environmental concerns also arise from energy-intensive bot operations.