Whitepaper | A Gateway to a Worldwide Audience
The popularity of security and utility tokens has continued to grow worldwide. In fact, in 2017, more money was raised via token sales for startup companies and blockchain projects than was raised through traditional venture capital financings. The market, in turn, has already established a set of best practices. All token offerings 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 such projects 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 token 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 tokenization.