Whitepaper | A Gateway to a Successful ICO
The popularity of Initial Coin Offerings (ICOs) continues to grow worldwide. In fact, in 2017, more money was raised via ICOs for startup companies and blockchain projects than was raised through traditional venture capital financings. The ICO market, in turn, has already established a set of best practices. All ICOs are accompanied by a Whitepaper, a document that educates the audience about the project with a detailed description of the blockchain attributes. The Whitepaper also makes an effort to tie in the technology to an underlying business opportunity, outlining the need, the market, the expected growth in offerings and user interaction with the product or service. In a way, a good whitepaper is as comprehensive as a good business plan with a deeper conversation about the actual underlying technology and why the team is the right one to pursue the project.
Since most projects embarking on an ICO have no product, no users and no real-world traction, investors must believe the black and white script in the Whitepaper to reach a decision point. Hence, the credibility of the Whitepaper matters. Among other things, the issue of tokens has to be addressed appropriately from a variety of perspectives. These should include:
- Legal: Are the tokens considered security offering or utilitarian?
- Project Economics: What will the funds be used for?
- Investment and Trading: Where will the tokens be listed at and how liquid will they be?
- Technology: Can the tokens be mined?
- Operations: How do users utilize the token for platform enhancement and network effects?
These are a few of the questions paramount in any ICO investor’s mind.
At Proteum, we understand that every business is unique in its needs and we spend the time to understand the entrepreneur’s vision of why the project is needed and help them navigate the road to an ICO.