One of the key steps to launching a cryptocurrency is drafting a whitepaper. The whitepaper is an important document for a cryptocurrency as it provides the currency with credibility It also clearly and articulately demonstrates what the currency will do and conveys any complex technical points clearly and effectively.
A white paper in cryptocurrency is a comprehensive and detailed report, in part very technical in nature, that a project will release as part of their lead up to an ICO.
It is often similar to an Offer Information Statement, and provides a range of information including:
- The proposed team and key personnel
- Technical information on the technology and the problem it solves
- Financial and employee information
- A clear summary of the project and the core objectives.
In the blockchain environment, whitepapers can be highly technical in their nature, requiring a subject matter experts to review certain parts of the white paper.
Companies issue a white paper to sell their products and therefore, a whitepaper is essentially a marketing document used to sell the coin, although it’s important for it not to appear as a sales pitch.
The Tender Team and Tsaks Consulting provide the following guide for writing an ICO:
Develop the project outline
The project outline must define the problem you propose to solve. It needs to have a unique point of difference and has to generate interest from the reader. Investors will read many different white papers, so it’s important that the project sparks their interest from the very start.
Develop the solution
The solution details how your project will solve the problem. This is a detailed breakdown of your project, and needs to include a detailed description and methodology. Your solution needs to be based on evidence and market trends. You need to clearly articulate how it is position in the market.
Your solution can include infographics and visual depictions of what you want to achieve. A detailed budget is also critical as it provides investors with reassurance on where their money will be spent and why. It provides the ICO with credibility.
The solution should also include a Roadmap. A roadmap will illustrate to investors the direction they expect the project to head and the key milestones to be achieved. It will provide them with greater confidence and a vision of what they are investing in.
Information on Token release
This section provide detail of your ICO token issue. You need to provide information on your crypto tokens, what their value will be, how you propose to use them and what platform you will issue them on. Investors will want to know how they will be able to redeem their tokens. You need to detail the refund process, in case you do not reach your target amount. Terms and conditions should also be included.
It’s also important to give investors the confidence that their money will be kept safe. If you have employed the services of a specialist security firm its important to stipulate who they are. Investors need to be confident that their money is safe.
Your team profile
Here is where you present your team, their qualifications and experience. This area is critical as it needs to provide the investor with confidence that your team can deliver. The influence, reputation and credibility of your team members is a major driving force behind the success of any whitepaper. Investors will want to know who you have on your team, what they have delivered in the past, what expertise they will bring to the table and what role they will play in the project.
Conclusion
Your white paper needs to be convincing from the first sentence and even the cover page. It needs to engage the investors, plant a vision in their head of your project and what you want to achieve. It needs to be filled with evidence and fact and it needs to deliver.
The Tender Team and Tsaks Consulting have a specialist whitepaper ICO division which assists companies to draft and develop their ICO whitepapers led be leading whitepaper consultant, Jason Cooney.
