Initial Coin Offering (ICO) is, without a doubt, the most innovative raise funds. Its popularity is on the rise, as, according to Fundera:
- A total of 3,782 ICOs were opened last year
- The finance industry has the biggest number of opened ICOs – 644 in 2018
- Completed ICOs raised almost $7 billion last year
Initial Coin Offering often involves a statutory documents called an ICO white paper, which is a sort of a guide for the investors. Besides, as ICO is also a high-risk mechanism, providing investors with extensive information on an ICO is a must.
A Closer Look at The ICO White Paper
What is an ICO White Paper?
A white paper is a document, which includes an outline and a solution to a problem that a certain fundraising program is designed to solve. It is an authoritative guide for potential investors that clearly states:
- the aim of the ICO
- potential risks
- solutions to overcome these risks
- the outcome of the ICO
You can think of an ICO white paper as a marketing presentation, in which you persuade the investors that they are making the right decision by investing in your venture. It is also important to note, that no ICO should be released without a white paper in addition to it.
The Stages of ICO White Paper Preparation
ICO deals with cryptocurrencies and blockchain technology, a white paper should describe in detail how cryptocurrencies and blockchain technology will be utilized to solve a certain problem, stated by the ICO.
Like with any other white paper,