As the worldwide deflection from ICO to STO has begun, ramifications are being seen in the ways of marketing as well. Though the basics of both the offerings is quite the same, there is notable change because of the induction of regulations in security tokens. Therefore, there has been a significant change in the drafting of whitepaper as well. There are proper guidelines which have to be followed while preparing this document for STO.
“STO Whitepaper is the most pivotal document for the project. If that is not well-drafted, the project is surely destined to doom.”
Since the very beginnings, products and services based on cryptocurrency have always been subjected to criticism. With STO, these questions have been quelled as regulations have made their way into blockchain and gaining confidence o people.
WHITEPAPERS CAUSED THE DEMISE OF ICOS
When ICO marathon was on rage, it become a source of employment for many content writers who went on to draft whitepapers regarding projects they didn’t have any idea about. You cannot totally blame them as the projects owners also wanted a piece of document on their website for namesake.
Some writers have actually made a fortune out of it with a pay scale of 100$ for a project.
And there is no surprise as the surge was so massive and everyone was willing to make the most of it. After a few successful projects which made the concerned investors wealthy, the rest of them also wanted to indulge in the ICO fever. It didn’t take very long for a few professionals to realise that this is the time to cash in from this frenzy.
Thankfully, security tokens came into the picture as a answer to all the questions framed by the crypto critics. There are various projects as well failed due to the lack of regulations despite every prospect of being a potential money-spinner for investors. Tezos was one such project which failed due to the lawsuit filed against it by the Securities and Exchange board.
Legal compliance is now mandatory not optional
With the emergence of STOs, it has become very clear that cryptocurrency will become more commonplace. Now the legal aspect of this technology has strengthened and it has got better than before. This instrument makes your investment more reliable then any other crowdfunding platform.
Rise of STOs
Security Token Offering has been proved to be the most promising investment for every investor in the world. It is now being talked about in various factions of markets and forums with alacrity. This has truly enhanced the scope of STO whitepaper writing services. And it is also more rewarding to them with an offer of $100 per piece. However, the writers have to be knowledgeable about the guidelines and regulations.
They also have to be more careful before mentioning any fact and example because it will all be scanned with legal viewpoint. Most of all, a writer has keep the vision of the business in mind and then begin writing it. As far as the design and format is concerned, they also have to use more engaging templates. It has to look vibrant to the reader and should incite them to read more.
STANDARDS FOLLOWED FOR WRITING STO WHITEPAPER GLOBALLY:
1. Categorizing the content into various smaller sections for enhanced legibility. But, it is not advised to include more than two headings onto one page.
2. It is also advised to keep the excerpt short. It it exceeds 100-150 words, it could really be problematic to every reader.
3. Always keep the target audience of the whitepaper in mind. In case of STO, it is the investor and it has to include the token sales detail in a very comprehensive manner.
4. The writer has to be be versed in making flowcharts and piecharts as wells. Apps like OmniGraffle, Lucidchart, Draw.io etc are very helpful for it.
5. Save your content from plagiarism, it can entirely ruin the whitepaper.
6. The focus of whitepaper should be on the solution and not blockchain. The document should not deflect from the solution.
SECTIONS OF AN STO WHITEPAPER
There are multiple sections in an STO whitepaper which gives readers selected information. Here are the 7 sections which get included in whitepaper mostly in the order mentioned below:
1. Disclaimer
2. Overview
3. Product Details
4. Technical Architecture
5. Token Offering Details/Tokenomics
6. Business Model
7. Team and Board Members
The order can also be altered if you want but this is the most preferred format adapted by the writers so far. It divulges the details step by step and keeps the reader intrigued.
SIGNIFICANCE OF LEGAL DISCLAIMERS IN AN STOP WHITEPAPER
They are also called Forward-Looking statements which are provided by law firms/agencies after the thorough review of the project explained through whitepaper. It includes the following items:
Clauses for Expectation of Profit: Security token offering is a potential investment and it involves a significant amount of risk as well. Therefore, you need to mention to what degree your investors can expect profits and how they will be delivered.
Allowed Nations: Security tokens are considered equity and there are certain rules when it comes to regulations over assets and commodities. Many countries bar their citizen from investing their money into particular nations. For instance, investment in Libya, South Sudan and some other countries has been prohibited by the US government through its PATRIOT act. Therefore, if an STO is registered in Libya, citizen of the United States will not be able to participate in it.
Rights & Benefits included: In the typical STO structure, token are developed to give you voting rights. The rights to dividends and ownership of asset supporting the token is also provided.
Privacy Policy for Token Sales: This section tells you about the storage of data within the architecture of STO. Privacy policy plays an pivotal part eversince GDPR has come into the picture. A like should also be provided who gives you access to privacy policy of the company.
BRIEFING ABOUT THE INDUSTRY ABOUT IN AN STO WHITEPAPER
Every projects concerns some industry no matter what the medium of crowdfunding is. STOs can also be used for any industry or project and it becomes necessary for every project to give a fair overview of the industry it relates to. Previously, many ICO projects did the mistake of missing it and it reciprocated in failure. It is not necessary that the investor or the reader knows everything about the industry your project is dealing in.
The section of industry overview can also be categorised into different sub-categories such as:
History Of Industry: Give a detailed description of how this industry has come into being. Highlight all the important dates, innovations and how it impacted the lives of people. Prepare a full-fledged essay and discuss the existing challenges prevalent in the industry. For instance, if your project is regarding supply chain management, then focus on how your project can eliminate the intricate network intermediaries slowing down the business.
Impact on Stakeholders: Every project has its own limits and benefits to the stakeholders. The whitepaper needs to discuss their problems at length and try to give solutions. It must come up with an adaptable and feasible solution which could be adapted by a large number of stakeholder. It is essential that the document must try to innovate and forge a new solution to every issues.
Emerging Trends in Industry: Your whitepaper update the audience about the recent changes taking place in the industry. Blockchain is not the solution of every problem and you need to be open about finding alternatives. The document should provide information about the latest updates and how it is potential for getting a solution. It is must the problems should be discussed and their solutions must also be sorted.
Market Potential: Unless you discuss market potential, your product won’t be able to prove its viability. It is utmostly important for you the show how fit your product is the market. It is not limited only to using the ‘buzzwords’, but actually giving a resolution to all the problems. You may also need to include infographics, charts and various other information to explain all your points.
Please ensure that the industry overview section does not take more than 10-12 pages. If it does, it would bore the reader and he/she may not advance to the next section.
Writing about the product in STO Whitepaper
Probably the most important section of whitepaper which describes its purpose. It is essential for you to present the product in the convincing manner to the readers, then only, they would be converted into investors. You need to do whatever you can to make this section impressive while showing the product in its most genuine form. You need not add more pages unnecessarily, but try to explain its mechanism in the simplest manner.
In the same section, you also need to explain the solution and this is again categorised into two sections.
Solution Overview– This section must focus on the mechanism of the solution and must explain how it is built. Many a times, a solution also combines multiple methods, in that case, it is presented in various modules that make understanding of the project easier. For instance, a crypto-based solution may involve a a wallet, portfolio and an algorithmic trading module. They all have to be explained separately in order to make the whole mechanism clear to the readers. It must involve small paragraphs explaining the modules and diagrams illustrating the modus operandi.
Solution Details– The detailing of the solution is very important and the project must be explained comprehensively. However, it should not be excessively wordy or complicated, the sophistication of solution depends on its complexity and it should represent the project in the best way. The recommended approach is to make it as simple as possible so anyone could understand it.
This particular section is presented as an all-embracing solution to the problem. It should be able to strike a chord with the reader and convince them about the solution. If you have an expert by your side, you can achieve the heights of success in your project. Coin developer India is such service provider which can help you accomplish this feat.
