How to write a proper white paper for your ICO
Hello crytpo startup community!
Many of you ask us on InnMind about how to write a white paper for an ICO. So - let's share some important notes on this question...
Nowadays ICOs seem to become an almost daily occurrence with blockchain and cryptocurrencies hitting their bloom period. More and more investors are looking at the market eager to invest. This is when it becomes highly critical to prepare a proper White Paper - a key element in the entire ICO process.
With nearly 1 million entries for ‘White Paper for ICO’ in the Google search it is crucial to separate the wheat from the chaff and to define what to include in a good White Paper.
A White Paper is a document the team writes before ICO launching. A successful White Paper details the technological and financial aspects of a new project, it’s main purpose being to help investors make up their mind.
In a nutshell a White Paper should contain the following parts.
ICO Project outline.
In this part you should describe your idea and the problem it helps to solve. In other words, you should outline why the world needs this product and show the readers that you know their pain.
The Solution to the Problem.
Here it is very important to explain in what way your project is different from that of the competitors, how your target audience can gain from your idea and provide an analysis of the current market. Neglecting these aspects may make investors doubt that you take it seriously.
Startup team.
One of the pivotal elements of your White Paper. Here list the team members and advisors if relevant together with their backgrounds and previous experience with alike projects or ICOs. This will help potential investors take your project seriously and be ready to part with their money. Sometimes people are ready to invest in a prominent name knowing that this person’s expertise itself guarantees success.
Token Distribution Method and Economic Considerations.
Token description, token distribution terms, dates of exchange listing, sale methodology, redemption process and security guarantees should be listed in this part.
Legal aspects of the ICO.
With current legal climate trying hard to keep up with the fast developments in the sector, it is highly advisable to describe your ICO’s legal jurisdiction and other regulatory issues, especially if you are targeting American investors.
When working on your White Paper remember that the majority of the investors do not have a PhD in Science that is why it is recommended to keep your White Paper simple. If a more technically sophisticated description is required, you may offer a Yellow Paper that will present the technology in scientific detail.
Don’t neglect diagrams and images which are relevant to the topic. It will help your readers find their way through very long passages of technical and financial information.
White Paper is the pivotal document of your project. With a smart White Paper you’ll find investors being more eager to support your project.
Here are some examples of Successful White Papers:
Ethereum: https://github.com/ethereum/wiki/wiki/White-Paper
TaaS: http://taas.fund/media/whitepaper.pdf
ICONOMI: https://coss.io/documents/white-papers/iconomi.pdf (@noelthompson)
Bancor: https://www.bancor.network/static/Bancor_Protocol_Whitepaper_en.pdf (@bancor-network)
Quoine https://s3-ap-southeast-1.amazonaws.com/liquid-site/quoine-liquid_v1.9.pdf (@quoineliquid)
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