Over the last couple of years between 2016 and 2017, tech start-ups have raised over US$ 3.5 billion via what the layperson may term as vaguely-known and largely informal initial coin offerings (ICOs). Most people that have invested in the opportunities that these ICOs present, did so purely because of the language and element of the white papers that the various ICO teams fronted.
However, US$ 3.5 billion is a colossal amount and if more businesses ideas are going to seek to fund in a similar manner, it definitely is the best time to have a rating format that can guide future investors.
Here is a rating system highlighting the key features of a great ICO. These include a white paper, the token, and how the product makes the most of the blockchain technology. Equally important are the roadmap of deployment, token compliance, sale, and the skills and experience of the team behind the idea.
An excellent white paper should have these five key qualities; comprehensiveness, transparency, proper presentation of both the business plan and the technology behind the ICO and, great readability.
A white paper needs to cover all the essential aspects of the product, the technology behind it, its utility, roadmap, among other essential aspects. And, it should do so as coherently and comprehensively as possible.
Essentially, it should start by highlighting the problem that the disruptive technology wants to address, how the technology will address it and how the result will help make the world a better place as a result. The most important aspect of a white paper and one that makes users invest their money in the idea is the utility of the idea. The white paper, thus, must highlight this comprehensively so that investors are able to peek into the future to evaluate both the utility and the resulting demand for the technology.
The white paper should be readable and presented in clear and coherent segments, each, addressing every essential aspect of the ICO. The tone should be formal and professional but in a manner that caters to tech buffs and common people alike. Fundamentally, this means that your white paper should make the tech components of the token easy for everyone to read and understand.
As highlighted earlier, many people commit their money to funding ICO ideas largely because of the information presented in the white paper. It is, therefore, good practice to not only make the white paper comprehensive but also very truthful. When highlighting the disruptive technology that the token is built around, for instance, only highlight the tested capabilities based on the breadth of the technology without exaggerations. Importantly, avoid sounding sales-y.
Presentation (Business and technological)
While it is not good practice to project a sales-y tone in an ICO white paper, the presentation of the business and technical ideas need appear to the target audience as thorough, convincing and full of truthful promise. In addition, it should present the business idea as viable while highlighting the aspects that make the technology a good idea to sink money into. The same can be said about the technical presentation, which should make the idea easy to understand while highlighting its usability.
Overall, the white paper needs to adhere to the core rules of composition writing, which are a focus on a central idea and proper structural development that addresses details and descriptions. Furthermore, it should exhibit unity, coherence, and correctness.