In the last few years (precisely 2016 and 2017), more than $3.5 billion was raised by tech startups through largely informal and vaguely-known initial coin offerings. A lot of people that invested in the opportunities presented by these initial coin offerings did so as a result of the element and language of the whitepapers fronted by the various teams of the initial coin offering. ICO Whitepaper Requirements need to be explained to investors so they can have a better idea.
Nevertheless, $3.5 billion is a large amount of money, and if more startups and businesses are going to use a similar pattern to fund their ideas, this is the time to have a rating system that will guide future contributors.
Here’s a rating system that highlights the fundamental features of a good initial coin offering. These include the token, whitepaper, and how the product will utilize the blockchain technology. Also, the deployment roadmap, sale, token compliance, and the experience and skills of the team behind the idea are equally important.
ICO Whitepaper Requirements
A very good whitepaper should have some vital qualities such as transparency, comprehensiveness, great readability, and adequate presentation of the technology and business plan behind the initial coin offering.
- Comprehensiveness: A whitepaper needs to contain every vital aspect of the product, roadmap, its utility, the tech behind it, as well as other necessary information. This information should be stated comprehensively and coherently as possible.
- Readable: The whitepaper should be easy to read, and it should be presented in coherent and clear segments. Every segment should address a vital aspect of the initial coin offering. A professional and formal tone should be used, but it needs to cater to tech gurus as well as common people.
- Transparency: As earlier mentioned, a lot of people invest in initial coin offerings mainly because of the information offered in the whitepapers. Hence, it is very good practice for the whitepaper to be as truthful as possible.