What is an ICO/STO/IEO White Paper?

What is an ICO, STO, IEO White Paper?

An ICO/STD/IEO white paper is widely regarded as the most important aspect of a project. It is practically a technical and authoritative report, proposals, or business plan. A well-defined white paper is paramount if a project really wants to attract potential investors. In the majority of ICO/STO/IEO projects hoping to raise funds to bring the product to fruition, a whitepaper is the deciding factor.

What is the structure of an ICO/STO/IEO Whitepaper?

Structure of an Initial Coin Offering (ICO) Whitepaper

Even when the structure of an ICO/STO/IEO whitepaper looks different from another, it’s really not. The object of every single project’s whitepaper is to convince investors to invest. Below is the typical structure of a whitepaper for a blockchain project and very few have deviated from that format or structure:

Introduction: This section outlines the scope of the project. It informs potential investors of the problem the project is solving and why.

Disclaimer: The disclaimer focuses on the legal stuff. This section is extremely important for both project owners and potential investors. Since there aren’t any exclusive laws governing ICO/STO/IEO, parties need to be project… somehow.

Overview: This section introduces potential investors to the industry, market status, competitors, and finances of the project at hand.

Risk Factor: This is another legal section. All parties need to know what they’re really getting into. Here, both internal and external risks are calculated and outlined.

Problem Solving: Is the blockchain project solving a problem? Can the problem be solved without using the blockchain? Is the outlined problem really a problem? The problem solving section goal is to provide potential investors answers to these questions and more.

Solution: This part explains how the problem(s) will be solved with the project.

Token Distribution: This section tells potential investors when and how tokens will be distributed, token allocation, overall fees, and costs of the project.

Team Members: This section of the ICO/STO/IEO whitepaper provides details for team members involved in the project and their capabilities. Many, but not all, of the team members will have blockchain knowledge or experience. Some members simply need to know marketing, finance, or have other non-blockchain-related skills.

Milestones or Roadmap: This portion of the whitepaper takes potential investors through a series of project/token timelines. It gives a bird’s eye view of the project and answers questions about the project’s future.

References: This section references all the external sources and data used to produce the whitepaper. The right sources can extend the project some credibilities with potential investors.

What are the Benefits of an ICO/STO/IEO Whitepaper?

Benefits of an Initial Coin Offering (ICO) Whitepaper

A whitepaper is necessary if a project wishes to raise funds from investors. It establishes trust, credibility, and encourages investors to invest.

Another benefit is… a whitepaper can help the project gain some publicity by creating market buzz.

The project can make improvements by receiving feedback from investors.

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