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Why is the white paper the most essential ingredient of your ICO

SUJIT by SUJIT PATHAK

Published Sun, Jul 15th 2018, 09:28 | Writing

An ICO is a mechanism meant to raise funds, which is used by new projects to sell their undivulged tokens in lieu of Bitcoin and ether. It runs on the lines of an IPO except that an IPO involves the purchase of shares of a company by the investors. However, as an investor, it is essential for you to understand what the ICO does and how it will give you a return on your investment. An ICO white paper helps the potential buyers understand the significance of the ICO and the benefits that will be accrued to them upon investing in the ICO project. An excellent white paper for ICO will help the project by addressing the following points.   Vision and goal: The white paper must introduce an actual problem and offer a potential solution to it. Most startups try creating forced difficulties and therefore never manage to take off because they are not solving anything. It is essential that the project has a clear roadmap and vision on how soon it can solve the problem. The peculiarity of the problem and the solution’s uniqueness when combined, decide the fate of the ICO. The team: It is highly improbable that investors will put money in a project which doesn’t give out details on who will be overseeing the project and ensure its proper execution. A white paper must elaborate upon the team members and their track record in handling previous projects. It is often seen that investors are more willing to invest in a bad idea with a strong team to pull it off, instead of spending in a good idea with a group having a poor track record. The trust factor: While it is necessary to create a feeling in the minds of the investors that they are missing out on something, merely playing on their fear isn’t sufficient to draw out funds from them. The project has to be genuinely promising to attract investors. A legit ICO doesn’t have to push the investors to put their money in the project. Any company can get an excellent white paper written by a professional ICO white paper writer even if the ICO isn’t legit. But an honest white paper will mention the disclaimers about the potential risks in investing in the project. Such a gesture helps increase the credibility and trust in the ICO.   The white paper is the most significant factor which can sway the investors in putting money in your ICO. Your ICO can only be as successful as your white paper. Writing a precise and detailed white paper can do wonders for your project. On the other hand, a hastily written or poorly drafted white paper will adversely impact your project and will not get your ICO anywhere.  

Bio

Sujit  is a content writer at Sixpl. He has written approx 350 articles on Blockchain, ICO, and cryptocurrency. He is also a ICO white paper writer and has written ICO white paper template. He has written 20 white paper on Blockchain, and 8 white paper on ICO.