What is a white paper?
The information space around us is full of information about a variety of investment projects and opportunities. The leading position certainly belongs to the cryptocurrency market. Dozens of blogs, YouTube channels, Telegram, and Twitter chats are brimming with forecasts from experts and non-experts, predicting the market’s growths and declines. If you decide to become an advanced crypto investor, we recommend not to rely on unverified information but explore all the possible facts about the currency you invest money in. This article gives you an answer about what is a white paper, that ushered in the blockchain era.
First of all, a white paper is a document, describing in detail the main idea of a project and its technical characteristics. It also shows and explains the reasons for investing in a particular project. The white paper is considered as a marketing tool that will either make a sensation out of an ICO project or turn it into a scam. Developers of blockchain projects create and release white paper to give a profound understanding of their product. Worth noting that producing a white paper is a quite time-consuming process as it is necessary to write a detailed manual regarding the new digital currency and describe all necessary aspects of its issuing. A good document prepared ICO project team should not only be informative but also concise.
Besides, what information should be included in a white paper? Of course, it is necessary to specify the further direction of developing the project, the amount of investment in it in the future. The information about crypto-currency description is vitally important to hold community attention and investments in the project. This chapter also should contain the estimated coin price, market capitalization, total coin emission, and budget. Therefore, by releasing the ICO white paper, the developer can easily attract potential investors and prove to them the project is competitive enough to bring profit in the future.
However, the white paper is a presentation of the project to the public. In addition to the description, market analysis, technical characteristics of the project, and legal aspects, it also contains information about the team of developers and authors of the project. The concept of the project should be unique, as the first impression strongly depends on it. Probably, it should be different from similar products on the market, depending on the main idea and purpose of the blockchain project. Nevertheless, some investors always have a checklist of aspects they usually pay attention to in a white paper. Thus, be sure you mentioned the concept of the project, its history, the stages of implementation, and the legal component, for sure.
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Valentina BEREZA, Team bit4you
