An ICO white paper is a document that states the technology behind a blockchain project. This will have a detailed description of the system architecture and interaction with the users. It will also contain information such as the market cap, anticipated growth and technical details like the terms and conditions regarding the use of the tokens. It will also have information on the team behind the blockchain startup, starting from the team members all the way up to the advisers involved, including links to their past projects and Linked In profiles.
Without a white paper, a project cannot invite potential investors. Having a badly written one will be detrimental to the success of the planned ICO. What you really need is to write a good informational guide as most of your investors will be looking at it prior to investing in a company. Some projects even write a secondary technical document if the details specifications cannot be accommodated in the first one.
Today, we will learn how to write a really good ICO white paper. If you are planning a crypto startup soon, these will be what you need to put on the document you are writing.
A good white paper will always start out with a problem. Every company or blockchain project starts out with a problem. It can be a problem that we are currently experiencing right now or something that we will be experiencing in the near future. It can vary from anything like how musicians get booked for live gigs, all the way up to how fast our banking transactions are.
Your documentation should have a detailed explanation of this particular problem, along with the pitfalls that come with it.
Now, this is a direct co-relation to the problem that was discussed in the first step. This will be the section where you should write on how to tackle the said problem in the first step. You will need to provide a detailed set of steps on how you will solve the issue. You will also need to answer most of the common questions the investor might ask in this section of the document.
In this section, you will be talking about your product. After all, you are providing a solution to an existing problem, and your product is the answer to it. This is where you turn on your charm and sell your idea. You will need to talk about the tech specs of the product you are launching, the infrastructure behind it and also how you are going to develop it in the long run.
You can also include your roadmap for your company in this section as it directly co-relates to this part of the white paper. A working prototype of your product is a bonus, and if you have one, you need to launch a beta phase in here too. This way, your investors would have a full grasp on the idea you are trying to convey and it will help them better understand your solution if they are able to test out your software or hardware.
This section is the most important part of your document. This is more like you’re unveiling to the world. You need to be truthful and honest here and be realistic about your goals. Lying here to please the investors will do more harm than good as they might not invest in your project if they see something off. Your company’s reputation is at stake here so you will need to announce every little detail regarding your company for transparency purposes.
This section pertains to everything economics. This is the section containing how your product will affect the economy. Marketing is very important here because people would want to see how their investment grows in the near future. You will also need to include your financial roadmap in this section as people who invest would like to see how you will use their money for development.
You must discuss how you are going to market your project to the public in here. If you plan on advertising it physically or virtually, you should state that in this section. You must divulge your financial responsibility to your investors because if people see that you are not capable of handling their money, they would never go for your project.
This is the second most important part of your white paper. You need to introduce the people and the faces behind this project. A high-value team with a lot of experience will definitely attract a lot of potential investors your way. If any of your team members have prior success with a different project, all the better. You will include all their details here, from past projects, job experience all the way up to their Linked In profile. You treat this section as an open resume, where your investors can and will be able to check the background of each team member.
Like what I have discussed in the introduction to ICO article, I wrote previously, your team should consist of experts from their respective fields. Treat this as something like The Avengers or the Justice League. If your whole team has an impressive resume, you will have higher chances of securing a lot of initial investors. Remember, success attracts investment just like how a candlelight attracts moths.
You will be outlining how you will distribute the tokens in this section. Everything from bonuses from pre-sale ICO, bonuses for the ICO itself and even the bounty rewards should be discussed here. For the bounty section, you should hire someone who can run your campaign successfully as this will generate a lot of advertising on all different mediums of social media accounts.
If you are planning on buying back tokens for burning, you can also discuss it here. Every little detail of your operation regarding token usage should be discussed. Do not leave blank spots in your information because ICO investors would surely want to get a hold of information, and it is better if it comes from the official source and not from someone else.
My final thoughts on this particular topic are; Never leave out information when you are writing your white paper. You should disclose every bit of information regarding your project if you want your ICO to be successful. If you need to discuss the technical aspects of your operation, do not hesitate to create a secondary document just for the technical discussion of it. Do not sugar coat because if your investors notice that you do not know what you are talking about or if you are falsifying information, you will lose those potential investments from a lot of people.