In this guide, you can find answers to questions such as what is white paper and what is white paper for. Continue reading our guide for your questions about the White Paper, which you often hear about.
What is White Paper?
Every Initial Coin Offering (ICO) in the market needs a White Paper to be a successful campaign.
It is a document that outlines a problem that the project wants to solve, its solution, a detailed description of its products, its architecture, and its interaction with users.
The content of any White Paper should include (in no particular order) the following talking points, but are not limited to:
- Definition and problem of the market
- Description of the product and how to solve this problem
- Cryptocurrency: how many, why, how, when, etc.
- How will the raised funds be used?
- Road map
How to Write a White Paper
At the very beginning of the White Paper there should be a section to put a disclaimer or a disclaimer that should contain any important restrictions or notices. These could be about trying to get citizens of certain countries to buy the tokens of the project due to local laws, or to let future investors know that the investment itself will not be profitable.
Perhaps one of the most important steps in writing almost any document is making a compelling introduction. A good move is to present the introduction in the form of a letter from a CEO addressed to future cryptocurrency holders.
In this section you should state the problem your project intends to solve: Provide an explanation of why this question is important. And even the results of the analysis are where you should refer. Here it is for you to grab the reader’s attention, explaining the benefits of reading the document. And you need to provide an overview of what they can expect from them. To do this, use any tool: graphs, tables and so on.
A White Paper is usually a technical document and can be approximately 25 pages long. Therefore, your White Paper is accessible for referrals. And making it useful is extremely important. An informative and well-structured table of contents will definitely go a long way.
If the White Paper contains any terms you think should be defined, you can create a glossary in the same section.
Tell About the Project
Take as much space as you need to talk in depth about your project and explain to potential investors exactly where you stand in the current market. Most importantly, be sure to explain what the project is and what parts it consists of.
No one needs the numbers you might want to include in the White Paper, unless the research is backed by facts or analysis
Status of the Project
This section should also contain a detailed description of the current status of the project. Prototype data, initial users if any, development strategy and overall goals.
The majority of serious investors will only support projects that show something tangible, having an ecosystem and a user base will increase the project’s token’s chances of survival in the market. If you have any of these elements, make sure readers are clear about it.
Be sure to set aside a large portion of your white paper for financing the project. You should be able to clearly explain why your project needs its own cryptocurrency, how and when it will be distributed. The number of cryptocurrencies for the ICO will be limited, when the sales will start on the market, etc.
Fund Usage Plan
Investors should know exactly where their money will go and how much money the project will need to complete certain important tasks. Most importantly, the White Paper should not mention expenditure items such as “networking event”, “industry development”, “miscellaneous” and so on. Your White Paper states that all the money raised will be spent on development. And it should make it clear that nothing else.
Finally, the White Paper is not just a detailed technical description of the project. It should also include a development roadmap. Ideally, an in-depth study plan for the next 12-24 months should be shared. And at least a beta version should be made available.
If some tasks on the roadmap have already been completed. Make it clear in the White Paper as investors will see this as a huge advantage.
Talk About the Team
The team is an integral part of the project and should definitely be presented in the White Paper. With rare exceptions, an ICO with anonymous developers will not be a success. While the rest of the White Paper is a technical explanation, this section is where the human touch is essential. Photos and short bios of the development team will be a great advantage in the eyes of investors.
Don’t just explain who the people behind your project are. Also be sure to explain why they are so important to this project and why these people will be involved. Be sure to indicate in what way their previous experience will help this project. Make it clear if any of the team members have blockchain or cryptocurrency related projects.
You can also include a few words about the consultants of the project. However, refrain from name-calling, as the consultants we’re talking about must be more or less experts in what projects put in to achieve.
Style, Language and Layout
When preparing a white paper, be sure to use formal, almost academic style of writing. The document needs to be very descriptive and professional in tone. Its focus should be narrow, as it is better to choose one topic and focus on it.
More often than not, White Paper authors tend to gloss over potential use cases and possible future applications of their technology, rather than focusing on a task at hand.
If you are considering selling party hats via blockchain. Don’t think about your intention to introduce customization services along with another startup by 2025, or to start stocking up on top hats and snapbacks in the “near future”. Focus on integrating party hats into Blockchain. Focus on how to get your icon’s party hats with a new string or update a new paint job for them.
Moreover, the White Paper should always be factual. Avoid using assumptions, guesses, and unverified claims. Also, be sure to check your White Paper for typing, grammar and spelling mistakes and check everything you can actually do. The text of the entire document should be neatly formatted to look professional.
In addition, if you want to be able to present your White Paper in several languages, only seek the help of an expert translator for a 25-page document.
Where Will the White Paper Be Sent?
A few years ago, there were examples of successful ICO campaigns posted on various Bitcoin-related forums. But now that the ICO craze is at its peak, most of the projects prefer to publish their White Papers on their websites.
GitHub, forums etc. Other options such as Avoid copying and pasting on different platforms. Instead, you can share a link while promoting your project on different forums and websites.
ICO White Paper Templates
As with other semi-complex business-related documentation, there are numerous White Paper templates available online. Generally, the use of such templates is handled by both cryptocurrency and investors. If you are preparing a unique quality product, you should spend time on a unique White Paper.
ICOs are becoming more and more popular, with the number of freelancers proposing to write a White Paper for the upcoming and startups growing exponentially. And it apparently costs $100. However, this should be seen as an option by any more or less serious project.
At the end of the day, the White Paper will be your main selling point. This is a reflection of your team’s unique vision for the product. And it should be taken seriously. Hiring a freelancer to do this work for you can only mean a sub-effect. As a result, you will not be able to collect the necessary money.
Examples of Successful White Papers
Some examples of well-written White Papers and successful ICOs include:
- Ethereum – $15.5 million
- Quoine – $105 million
- DigixDAO – $5.5 million