A whitepaper is a technical document that provides the most in-depth overview of the idea of a project. A whitepaper is used as one of the primary marketing materials during an ICO since most of the investors will be making a decision on whether to support the project based on a whitepaper. Being the main source of detailed information about a project, whitepapers are often translated into several languages. They can usually be downloaded from ICO websites and are typically used for ICO evaluation by industry experts and investors.
What is included in a whitepaper
A proper ICO whitepaper includes a detailed overview of the token sale stages, the problem that given product strives to solve, and the solution to it. A good whitepaper needs to have very detailed technical information, describing how the project technology will work and why it is superior to the competition. A whitepaper also needs to include a market overview and information about the team.
One of the most critical aspects of a whitepaper is an overview of the project’s token economy, emission and distribution mechanisms, and plans. Whitepapers usually contain funds allocation structure and a roadmap.
Importance of a good whitepaper
Since most ICOs start at a very early development stage, when even a pre-alpha version of a product does not exist, a whitepaper is a primary document that describes and communicates the potential of an idea and the competence of the team to the investors. Success of an ICO is often dependent on the whitepaper. Whitepapers also play a significant role in receiving high ratings on ICO tracker sites, that help potential investors separate promising ICOs.