IF ICO IS THE GATEWAY TO SUCCESS, THEN WHITEPAPER IS THE TICKET TO THAT GATE
There are many articles posted which show miscellaneous details about cryptocurrencies and its effects on the economy. They are mostly full of praises about the technology and tell how it can change the future. However, the ICOs have been devoid of their due credit, a spin-off of cryptocurrency which has helped many entrepreneurs to break the traditional barriers of raising capital and made their own way in the market.
Sooner or later, the credit will surely be given to ICOs. In the meantime, it is worth of discuss ICOs and its aspects. Initial Coin Offering (ICO) is a crowdfunding concept, under which an investor can invest in your project by buying the tokens in sale offered for the project.
And how do the investors invest in a project? What exactly do they look for? There is one answer to that- Whitepaper. This is the document which decides the fate of a project. Whitepaper consists of each and every detail of the project, the idea, challenges, solutions, mechanism and profits to the investors.
Minds behind whitepaper
There are many professionals who drafted whitepapers for their projects. From lawyers to entrepreneurs, PR practioners and this has now been passed on to the band of professional whitepaper writers. Usually, in the beginning of every whitepaper, there is a disclaimer which informs the readers about the risks involved in the project.
At the same time, whitepapers do their job of convincing you to invest in the project. The idea to build a trust in the investor, every investment involves risk and investors know that very well. Telling them about it above-board is a way authenticating your project as an instrument of investment.
It has become so customary now, that without a whitepaper you cannot imagine an ICO. An ICO whitepaper is bound to show these details.
- Motto of the project.
- Technology it is using or based on.
- The issues that the project is addressing and how it plans to counter them.
- How the token distribution will take place.
- Timelines for targets.
- Team and board.
Different between a Scam and Legit
Whitepaper is undoubtedly essential to ICOs, however, many speculative investors do not pay heed to details like whitepaper. They invest perfunctorily in any ICO under their own principle of buy, lie and sell high.
Although whitepaper reading becomes necessary as it tells you if the project is really worth investing or it is to be shrugged off. Since there have been a number of scams initially, one must go through this important document to discern between legit or scam.
There are three basic things which you should be checking carefully when going through a whitepaper.
- 1. Motto– The motto of the project as it is explained in the whitepaper will give you an idea if it would be successful or not. Watch out for the unique solutions that the project has to offer and whether it is feasible.
- 2. Team– A project can only be executed successfully if the team behind it has the efficiency to do it. These days, many projects have fake profiles of their team, morphed faces done with Photoshop and hypothetical records.
Many project owners do it for creating confidence in the investors by showing an influential team where members are alumni of top universities and brilliant achievers in their field. Even if the project is genuine, this deceitful trick can backfire and ruin the whole idea. Therefore, it is recommended to do a background check on the team and stick to actual team instead of showing a fake one.
- 3. Aura & Appeal– If you go through the whole whitepaper you’ll see that the project is focusing on. For instance, it can simply mesmerize you with the innovation or it can try to create a sense of urgency by telling you that it’s the right time to invest and if you miss it, you’ll lose an opportunity of lifetime.
Generally, projects trying to create this sense of urgency just want to sell their coins and gain profits in a short span. These projects may well be a scam, genuine projects do not feed on fear. They’ll just try to explain their concept and solutions they are offering. So please go through the entire whitepaper and understand what they are trying to tell.
Conclusion
It is quite possible for a company to hire a professional whitepaper writer and create a genuine proposal. However, if a scam company could make efforts to such a level, why won’t they work on a genuine project at the first place?
All in all, reading the whitepaper becomes necessary before investing into a project.
Technoloader is an ICO development company which offers professional whitepaper writing services. Our team prepares research based whitepapers which suit the project. We have delivered whitepapers to several types of project from different domains. Our clientele verified this claim and their success tell our story.
