Whether you’re an independent software developer or work as part of an ambitious young startup, starting up an Initial Coin Offering (ICO) campaign is smart. ICO campaigns centered on cryptocurrencies, with the intent to solve crucial global issues, have become quite popular over the years.
According to Tech Jury, 77% of the financial and 75% of IoT industry could adopt blockchain technology by the end of 2020. With the global blockchain market growth estimated at $23.3 billion by 2023, entrepreneurs should consider writing cryptocurrency whitepapers for their projects sooner rather than later. However, what really is a whitepaper in cryptocurrency, and how can you benefit from it? Let’s discuss what makes an effective cryptocurrency whitepaper, as well as concrete steps to write your own in 2020.
Cryptocurrency Whitepapers 101
Let’s unpack what we’ve discussed so far. According to Investopedia, whitepapers are informational documents meant to promote certain products or services. In the cryptocurrency industry, whitepapers are meant to explain what your cryptocurrency is and why investors should care about it.
This is done through the creation and promotion of ICO, a campaign which aims to attract contributors with first-token rights to your cryptocurrency. In short, individuals and companies who contribute to your project will receive token compensation for their efforts. A cryptocurrency whitepaper should include the following segments:
- Intro (where you welcome your readers)
- Legal disclaimer (copyright information about your project)
- Table of contents (for easy navigation following the first read)
- Problem/Solution (where you address why you are creating a cryptocurrency)
- Product description (where you explain what your publically-available product is)
- Token information (where you outline the benefits of backing your project)
- Stakeholder information (who your collaborators and team members are)
- Development roadmap (timeline of events once your funding is secured)
In order to write your whitepaper effectively, you can refer to writing tools such as Trust My Paper, Evernote, and Supreme Dissertations. Whitepapers are delicate, professional, and, most importantly, publically available documents which will promote your brand to would-be investors. Once you write and publish your ICO whitepaper, you will experience several important benefits in regards to your project, including:
- Filter out likely and unlikely investment partners
- Advertise your cryptocurrency/product/service prior to launch
- Scalable contribution possibility (for large investors and individuals alike)
- Test the viability and long-term potential of your idea prior to full production
Steps to Write Effective Cryptocurrency Whitepapers
- Identify your Audience
Before you start writing, you should be aware of who your target demographic is. Do you aim to attract tech-savvy millennials with IT knowledge to your ICO? Or do you want to address financial institutions and angel investors?
Your choice of audience will determine how technical or approachable your whitepaper will be. It’s important to adapt your language to whichever audience you want to attract the most. Once you pinpoint the target demographic, you can start writing your cryptocurrency whitepaper with more confidence.
- Present a Problem/Solution Scenario
What makes your ICO project different than others on the market? What global issue do you intend to solve with your cryptocurrency? In order to get the attention of possible financial backers early on, it’s good practice to start your whitepaper by presenting the problem head on.
You can write user stories in the problem/solution section, which will showcase how people deal with that particular problem today. Then, transition to a world where your ICO project is successful – how did your project change the world? Whether it be a revolutionary SAAS for B2B companies or a free-to-use smartphone app for public use doesn’t matter. What matters is that you want to solve an issue which people struggle with right now.
- Describe your Product
Be as precise as possible when you describe your product to potential backers. Abstract ideas and fluff won’t help you convince large investors or public backers to commit to your ICO project based on a flimsy promise.
Demonstrate how your product, be it an app, a physical product, or a service, will help change the world. A rudimentary prototype or 3D model, in addition to a video demonstration, will also add gravitas to your cryptocurrency whitepaper. Content creation platforms such as Grab My Essay, Canva, and Top Essay Writing can help your cause tremendously, so make sure to use them when writing. Place yourself in the shoes of your backers and think about what it would take to convince you that an ICO project is viable.
- Outline your Investors Benefits
While some investors may back your ICO project based on personal beliefs, most will want to do so in exchange for concrete benefits. More specifically, what do they stand to gain if your project is successful, and you start to generate cryptocurrency coins?
The best way to return the favor to investors is to offer them initial tokens generated from the project. These “virgin tokens” will have a higher incentive value than subsequently generated coins. As such, investors will be more than tempted to back your whitepaper, especially if you create a tiered backer system for your ICO project.
- Showcase your Stakeholders
Whether you are the project lead on your ICO or not, it’s good to infuse the whitepaper with information on who will work on it. Use the opportunity to write short segments on each of your team members, their backgrounds in development and cryptocurrency, as well as their role.
You can also outline companies or entities which have already pledged their support to your project (if there are any). This information will allow potential investors to see how committed and confident you are in your project, given the team you’ve assembled.
- Create a Development Roadmap
Finally, a structured roadmap should find its way into your cryptocurrency whitepaper as a closing segment of the document. Create a timeline of events, with milestones and smaller goals, which will take you from the ICO whitepaper to product launch.
You don’t have to uphold to the roadmap in a strict sense once development is underway – however, its inclusion is highly recommended. Just as with your team, a roadmap will allow backers to determine how well-thought-out your project really is. Without it, your promise of a “successful product” is just that, a promise.
Cap Off and Follow Up (Conclusion)
Publish your whitepaper online and be ready to follow up on the plans you’ve outlined in it. There is nothing worse for a brand than to raise funds and under deliver on the whitepaper. Cryptocurrency whitepapers are official documents which will serve to present your ICO projects to the public.
As such, it’s pivotal that they are free of proofreading or formatting errors to maintain your professional credibility. Before you know it, the right investors will find you and back your whitepaper, allowing you to enter full production shortly thereafter.
Bio: Kristin Savage is a professional writer and editor at Grab My Essay and Best Essays Education writing services. She has devoted her career to fields of digital marketing, sales, and business development – she exhibits these interests through contributions to Classy Essay writing service. Kristin is passionate about content creation, research, and different types of writing. She hopes to establish herself as a trustworthy source of reliable and approachable articles, case studies, and research papers.