Importance of Whitepaper in ICO, STO and IEO

What is Whitepaper?

If you want to raise funds in a crypto market through an ICO, STO or IEO, you need to prepare a whitepaper first. To start a crypto project, you need to build tokens and a whitepaper. It is like a business plan for the entrepreneurs and business proposal for the investors. The decision of whether to invest or not invest in the project depends on the whitepaper. Investors will buy the tokens only if they like the whitepaper. Every ICO, STO and IEO has a whitepaper.

A whitepaper is a document which contains all the important information about the project.      It contains information like problems, team players, risks associated, funds usage, revenue model,  competition, and more. It is basically the first thing the investors check before making the decision. If the whitepaper is interesting, innovative and transparent, the project can get many investors. Because of this many entrepreneurs approach professional companies providing Initial Coin Offering Services, STO Development Services and Initial Exchange Offering Services. They help in developing a whitepaper for the crypto project.

Components of a Whitepaper

• About Company: This includes all the necessary information about the company like name of the company, tenure of the company, past projects, future projects, current projects, partners, location, year established, position in the market, target market, etc. These all basic information should be mentioned so that the investors can differentiate between a genuine and fake company.

• Product Information: All the product information should be disclosed like, name of the product, type of product, product development, product timeline, product description, product launch date, product promotion, the safety of the product, etc.

• Problem: The Company should mention the problem they are facing and planning to solve. Every project has a challenge and a solution. The problem should be real, and the company should be able to solve it.

• Solution: It includes the solution to the given problem. The solution should be unique and workable. It shouldn’t be hypothetical.

• Team Members: Information about the people working on the project should be mentioned. Details like the number of members in the team, their designation, work experience, qualification, number of advisors, etc.

• Target Audience: It should include the target audience of the product. Type of audience the product will focus on and the benefits and uses of the product to the audience.

• Competition: Information about the number of competitors in the market and how the company will deal with its competitors.

• Token Value: Information like the value of the token, special features of the token, type of token, rights of ownership of the token holder, trading token, expected token value in the future, etc. should be included.

• Token Distribution: It should include information about the token distribution. How will the token be distributed?

• Roadmap of the Project: How the project will achieve the goals. Timeline of the project, including important dates and events, is mentioned.

• Utilization of Funds: Includes information about the use of the raised funds, allocation of the funds and distribution of the funds.

• Terms and Conditions: Includes important terms and conditions of the company.

• Tables, Diagrams and Statistics: The data about the product and project should be highlighted using tables, diagrams and statistics. The data should be authentic deriving real-time results.

Read Full Article