Insight into the fundamentals of an ICO Whitepaper
Over the past few years, the companies associated with the inception of an ICO have been taking a heed of whitepapers to convey their business ideology to the targeted customer base. This new approach of letting the customer gain a profuse insight of the ICO allows the company to appeal to the general public while keeping the concept clear and transparent.
The business propositions are conveyed in a sophisticated and detailed manner by virtue of an ICO whitepaper. This whitepaper can thus be envisioned as a formal article or business prospectus which provides for all of the requisite and fundamental information surrounding an ICO.
In technical terms, the whitepaper is a printed version of the business framework which constitutes the fundamentals like launch dates, roadmap, volume, performance and predictability graphs and all of the other requisite essentials. It is seemingly different from a conventional business letterhead or press release since it is way more detailed and contains all generic information regarding the upcoming ICO programme.
What is an ICO Whitepaper?
ICOs can be considered as the legitimate way of raising funds for upcoming cryptocurrency ventures. All of the incipient companies that are venturing out in the blockchain technology need to orchestrate a whitepaper since it will contain all of the fundamental and extensive information regarding the entire business plan and services they have to offer.
From the point of view of the token purchaser, the whitepaper basically serves as a statement of legitimacy sighting the fact whether or not the start-up is legitimate. Since the whitepaper contains crucial information about the entire business plan and the crypto-venture, it needs to be read in a thorough manner.
The purpose of the whitepaper can thus be envisioned to be very simple and transparent. It basically needs to elucidate the concepts of the ICO, the plans of the company with respect to the ICO and ethically what the project is all about. The whitepaper primarily serves the purpose of invoking trust and transparency between the company and the buyers that are going to be a part of this venture. An ICO whitepaper is curated to appeal to the general audience and enable them to understand the proposition in a more intensive manner.
Whitepapers thus contains all of the fundamental information in a structured and consolidated manner. It provides a comprehensive insight into every single aspect of the cryptocurrency venture such that all of the queries are answered in a proficient manner. The whitepaper also serves as an unofficial method to differentiate between legitimate ICO companies and the fake ones littered all over the market.
Format of an ICO Whitepaper
Many people feel that the format of an ICO whitepaper is pretty complex and intimidating. However to the contrary, the whitepaper format is pretty simple and therefore very easy to understand as well. The format of the ICO whitepaper is mostly inclined towards ensuring clarity and comprehensive insight to the project essentials.
Most of the whitepapers have a very common integral structure which is inclusive of the following:
- Vision of the project and the ICO
- Executive Summary which provides for a quick glance at the fundamentals of the project and the aspects of the ICO.
- Technology associated with the blockchain and ICO
- The approach of the project towards the market. The problems likely to be addressed, the new services likely to be introduced and every little aspect of the project which is likely to be envisioned as its unique selling point.
- The token distribution at a glance inclusive of the volume for development, hardware and public distribution. The core team token distribution volume along with the bounty as well.
- Timeline of the project and the roadmap for the development of the ICO.
- A small summary about the team members and the partnering companies.
With the inclusion of the aforementioned topics, writing a whitepaper becomes essentially easier and also more ethical. The presentation of the ICO whitepaper is also the key to prudency of the project. It is an integral and very important part of the entire execution process.