Before you can deploy any blockchain, a critical preparatory step is writing a white paper. Essentially, a white paper helps you describe your product to potential investors.
This article will show you how to write an effective ICO white paper that will convince investors to choose your blockchain. First, let’s understand some key terms.
What Is A White Paper?
In general terms, a white paper is an official document that provides information about a particular topic. In simpler words, it is a company’s business plan.
The presentation of the project’s concept is usually complex. However, its primary purpose is to provide prospective clients with an opportunity to evaluate the potential of a project, to decide to choose to invest in it.
In the blockchain world, an ICO white paper will explain every detail of an ICO’s new technologies. It also outlines the functioning methods, the purpose of its token, and potential profit.
A white paper is a compelling, important, and exhaustive review of an issue, indicating the problem and guaranteeing a solution. The aim of writing a white paper is to expose the philosophy of your company by explaining in clear terms everything about the project. This will help inspire trust in the consciousness of your potential client’s
What Is An Initial Coin Offering?
An Initial Coin Offering is an activity for raising capital in the cryptocurrency and blockchain market. It is a complex process that requires a broad knowledge of technology, law, and finance.
The primary idea of ICOs is using the decentralized system of blockchain technology in activities for raising capital that will correspond with every stakeholder’s interest.
Important Steps To Take In Writing A White Paper
Writing service review companies like Best Writers Online ensure their articles are tailored to the needs of their target audience. In the same vein, any company trying to raise capital using the Initial Coin Offering (ICO) technology must craft its white paper to solve the needs of a particular demographic or a problem mentioned in the white paper.
With the rising opportunities in the blockchain industry in recent years, more people are getting interested in investing in blockchain. These people will need a comprehensive white paper to inform their decision of the right cryptocurrency to invest in.
The following steps must be followed to write an effective white paper for your Initial Coin Offering (ICO).
- Include A Disclaimer
- Introduce The Problem And How Your Project Hopes To Solve It.
- Organize Your Work With A Table Of Contents
- Describe Your Token And ICO
- The Technical Aspects
- Review Of Team Members
- A Summary Of The White Paper’s Purpose
The disclaimer should be at the very beginning of the white paper. It should contain any and every restriction or notification about the project.
The disclaimer is crucial because it will inform investors if their country is restricted from purchasing your project’s token. The reason for such a restriction must be clearly stated – for example, if the existing laws of their country do not permit them to purchase your project’s token.
Introduce The Problem And How Your Project Aims To Solve It
A compelling introduction is like the props in a stage play. It provides a background for how every scene in the play should be appreciated.
In this section, the problem must be raised, and a solution offered. It is advisable to present the introduction in the form of a letter from the CEO to potential token holders.
After outlining the problem your project aims to solve, offer an explanation of the importance of the problem. You can also include consequences that may arise if the problems are not solved.
The introduction is where you grab the attention of the reader. You can use charts, graphs, and pictorial representations to explain the benefits of reading the document.
The graph, charts, and pictures will provide your readers with an overview of what they can expect from the document and will spur them to read on.
The Table Of Contents
A white paper on average is between 25 to 35 pages long. Such a technical document needs to be accessible and easy to navigate.
Create your table of contents to be very informative and properly structured. It can go a long way in ensuring your potential investors read through the white paper and understand what your project is offering.
Describe Your Token And ICO
This is a very crucial part of the ICO project. Offer an accurate and comprehensive description of the operating system of the token.
You must address the significance and importance of the cryptocurrency, its economic aspects which represent the benefits your token will offer overtime, and the procedure of making a profit.
The Technical Aspects
The technical aspects of the token system should detail the token creation period. It should also provide every technical term of the number of tokens to be issued, and the expenses that are associated with its release.
The technical aspect should also contain a list of all regulatory jurisdiction (legal aspects). It is in this part of the white paper that an explanation of all issues regarding your legal security plan is given.
Review Of Team Members
By including profiles of every member of your team, you are improving the credibility of your company and gaining the trust of your investors. Investors want to know the background of the people in charge of the project.
So ensure you put up photos and a brief biography of the development team. Explain why the members of your team are crucial to the success of the project by specifying how their previous experience will be helpful.
Summarize The Purpose Of The White Paper
A Writing Judge they round up their argument by summarizing the purpose of their paper writing service. So should you at the end of your white paper.
In this section, it is vital to emphasize the solutions for every problem you have stated and explain the significance to your target market. You should also cite the method used to create your project, its underlying concept, and potential.