The cryptocurrency technology officially clocked a decade in 2018, as the Bitcoin was introduced to the public on 31st October 2008. At this time, the mysterious originator of Bitcoin, Satoshi Nakamoto published his whitepaper titled “Bitcoin: A peer-to-peer Electronic Cash System”. Cryptocurrencies are virtual financial instruments introduced to enable value to be exchanged via digital media.
In the crypto world, proponents of new currencies usually raise funds from the public to float their firm. This is like the Initial Public Offering (IPO) used by companies in mainstream investment to raise funds from the public, but in the cryptosphere it is called Initial Coin Offering (ICO).
There are several ICOs fighting daily for relevance in the crypto world, and one of the ways through which the strategies being designed for successfully floating a cryptocurrency are marketed to the public is publishing a great whitepaper.
A whitepaper in this case, is a detailed document containing an explanation of the technology being proposed for a blockchain project.
It contains an in-depth breakdown of the network of the system and how it will interact with subscribers, requirements for issuance of tokens, data on market trends, growth projections and information on investors, project team personnel and their advisors.
This is a document pitching the proposed business to investors, hence it is important that it is richly garnished to catch the interest of readers. Thus, it is important for a whitepaper to employ some important ingredients discussed below.
DETAILED PROJECT OUTLINE
One thing that can make a whitepaper stand out is a comprehensive examination of the problem the project has set out to solve. The idea is to make this simple and articulate enough to catch the attention of the reader and wet his appetite for more information on the project.
Most prospective crypto investors get to see a wide variety of whitepapers with all kinds of proposals, thus it is important to write a catchy outline that keeps the reader interested in the project.
Using clear and concise graphics to explain technical details of the problem, solutions offered by your product and the expected returns will boost acceptance of the whitepaper, and invariably the project.
This outline should contain a clear roadmap of the key events to be carried out in the business, and the deadlines set for these. This gives the investors an idea of what to look out for and how to measure the progress of the project.
A major way to enhance credibility of a whitepaper and promote its acceptance is to do in-depth research in the area the project intends to be grounded. It is important to find out where previously released whitepapers of past projects have failed, and thus posit a realistic solution to the problems they failed to see or were unable to solve effectively.
An investor who sees that data and information obtained from failed and inadequate past projects are well analyzed and used to create a solution will be easily convinced to put in his asset into the project.
It has been observed that not every reader of whitepapers is an expert in cryptocurrency. People who don’t know so much about the system might also come across the whitepaper, hence dishing out information in clear and simple terms is key.
In making known the root problem, solution design and expected returns on investment in simplified terms and language increases the reach of the document. Making a layman understand the whole point of the project increases the chances of getting many investors on board.
MASSIVE TOKEN UTILITY AND USAGE ANALYSIS
Every investor wants to buy a token that has vast applications and can be used for several purposes. A classic whitepaper must show how the token you are proposing can be useful to investors, such that keeping it in their portfolios turns out to be an asset to them. The higher the utility of your token, the more valuable it is to subscribers, and the higher the sales at the ICO.
Thus, realistic plans to get the token listed on popular exchanges should be clearly stated in the document, so as to put the mind of investors at rest and boost their confidence in increasing investment levels. This prevents lots of speculation and sudden dumping of your tokens by holders.
One factor that boosts the confidence of any prospective investor reading a whitepaper is a clear explanation of how you intend to spend the money you raise from your ICO. An investor who sees a clear plan detailing how their monies will be used in building the product till it is well-known and widely applicable gets more confidence in the project.
Many whitepapers lack such depth, and lots of investors have lost funds invested in projects that looked initially promising but had no clear plans for using funds to establish and improve the product. Every investor needs to be convinced that their investments won’t end up being used to fund the founder’s expensive lifestyle.
CREDIBILITY OF TEAM MEMBERS
Most seasoned investors have come to understand the importance of a great and experienced team in the success of a crypto project. It is therefore important for any serious new entrant into the crypto sphere to carefully showcase the talents and experience of the team members.
This gives prospective investors some confidence based on the proven past accomplishments of the team members. This is also important as it is one of the criteria newbies in cryptocurrency investors will prefer to do business with teams who have proven success stories to their credit. A good example is the OmiseGo project, where the team members were from the successful Ethereum project and other established projects.
Every cryptocurrency project, like any other type of start-up business, requires a well drafted pitch, which in this case is what a whitepaper represents.
It is certain that taking heed to all the tips mentioned in this guide, will help prospective project founders to write an awesome whitepaper that will catch the attention of a large audience of investors.