In this blog post we will dive more into the nitty-gritty details of Crypto business whitepapers, including what they are, how to read them, and why you need to be reading them.
The Importance of the Whitepaper
Whitepapers are an integral part of many initial coin offerings. Some companies only accept investors interested in learning more about their mission. The main reason behind their popularity is that they provide potential investors with access to crucial information regarding your project, including who’s involved, how it works, what you’re aiming to accomplish, etc.
This way, you’ll be able to attract people who are highly interested in your project and understand exactly how it will impact them (and crypto as a whole). This helps increase the chances of higher investments because your target audience knows exactly what they’re signing up for.
Understanding Crypto Business Whitepapers
From exchanges to blockchains, all crypto-related businesses need to publish a white paper. A white paper is an extended sales pitch for your product or service that uses technical jargon to get across its point (White Paper). Companies use white papers to differentiate themselves from competitors while attracting new investors simultaneously.
They are usually written by experts in specific fields employed by their company and have extensive knowledge of the said industry. When writing these documents, it’s essential to consider all of your potential customers so that you may include information that everyone could find helpful. Today, I will go over some tips on how you should format your own Crypto Business Whitepaper.
How to Write a Business Whitepaper?
Crypto businesses need white papers just like regular businesses do. However, the main difference between the two is that crypto businesses have to make their whitepapers stand out from the crowd to succeed and gain funding for their projects. So, how can you make your crypto business whitepaper unique and attention-grabbing? This step-by-step guide will show you how to write an attractive crypto business whitepaper to gain funding on ICOs or get investments from venture capitalists.
Clarify your business model
Your business model helps clarify your idea and can streamline your crypto business plan by getting you to sit down and think things through methodically.
Write an executive summary.
An executive summary is a one-page document that gives readers an overview of your business. It typically includes an executive summary, an introduction, and a conclusion.
Include strategies in your whitepaper
Crypto business whitepapers usually include strategies on how your crypto business will be better than existing businesses in your industry. You may also want to cover how you plan on executing each step of your strategy.
Use charts, graphs, and screenshots
Instead of fitting everything into one page, consider using charts, graphs, and screenshots. This will help illustrate your key points and is also visually appealing.
Focus on creating unique content for your whitepaper
Focusing on creating unique content will make your business whitepaper more attractive to investors. When someone reads your whitepaper, they should feel like they’re reading something nobody else has ever seen before.
Create an action plan based on the whitepaper
What’s next? How can you formalize your plan so that it’s clear how your crypto business will move forward?
Look into ICO guidelines.
Before you start writing, make sure your whitepaper is compliant with any ICO guidelines. In most cases, ICOs will require your white paper to be published on their website alongside other pertinent information about your project.
Legal advice: Why do you need it?
Crypto companies need legal counsel when they enter new markets. Some do it willingly, while others are forced into hiring an attorney by foreign regulators. It’s not only about compliance; it’s also about assessing risks and finding ways to mitigate them, working with government officials, protecting investor interests, and fostering partnerships with other businesses in your field. This is all part of building out a crypto business whitepaper or corporate whitepaper.
What is a private placement memorandum (PPM)?
First, you’ll need to write your private placement memorandum (PPM), which is a document containing vital information about your company, including details about its ownership structure, management team, and financial statements.
Final checks before publishing
As you begin writing your crypto business whitepaper, ensure that all information is up-to-date and accurate. You can’t present inaccurate or out-of-date information to potential investors. You should also run a complete spell check on your document and a grammar check before you publish it for everyone to see.
Crypto white paper templates
The crypto white paper template has become increasingly important for any crypto business in 2022. Having an official whitepaper to highlight their services or projects can exceptionally be important. The crypto market is still highly unregulated, but whitepapers are one of few documents that can be used to legitimize operations in some cases (no specific legal paperwork is needed).
A white paper should be able to explain your project/vision clearly, allowing interested parties (investors) a clear picture of how you will work towards your goals (and why they’ll make money if they help you achieve those goals).
Things to read in the Crypto Whitepaper
What does this project do?
The first thing to reading a Crypto business whitepaper is that you are thoroughly aware of this project’s focus, purpose, and objective. There is no white paper without a target audience in mind, so it’s essential to understand where the crypto topic provides utility for consumers or enterprises (by enterprise, we mean any business).
A good example would be Ethereum, designed as a “general-purpose smart contracts platform with built-in value token support, allowing users to run programs exactly.
How does it work?
Whether you are an investor, miner, or business owner, people should know what your project is all about. The crypto whitepaper must include a detailed description of the procedure involved in running processes handled by this platform between users and machines (exchangers/miners).
For example, we can see that Miners are rewarded with Ether tokens for processing transactions on the Ethereum blockchain network. Similar to other industries, PwC cryptocurrency white paper template contains details about block size parameters and total supply (from initial set-up).
Read in the Crypto business white paper that “Why do we need this project”?
We should know what problem this project is solving. What are their strengths? Weaknesses? Opportunities and threats to stakeholders (investors, enterprises).
Compared with other choices of cryptocurrencies or blockchain-based platforms listed as alternatives, how big is its potential audience compared to competitors’ options?
Why do we need this project?
The crypto business whitepaper explains why we need a project like this – and the benefits that it will bring. The project will help solve a significant problem in the crypto world, and it will do so practically and effectively. This project has the potential to make a real difference, and we believe that it deserves your support.
Now you should know how crypto business white paper works. Check out the Revenue Coin white paper for some perfect practical example.