How to Write Ico White Paper: 5 Steps to an Ideal Document

The previous year 2017 has been the year of ICOs. There have been many projects that have successfully raised funds via initial coin offering and they’ve done it without huge efforts on their side. In this article, we are going to give some practical advice and how to write ICO white paper.

Now the situation with ICO fundraising is different. According to the study conducted by Satis Group LLC in March 2018, 80% of ICOs are scams and only 8% reach the exchange. The possibility to get easy money has attracted far too many companies’ attention, the competition has grown and now a project needs to work really hard to provide the success for the whole enterprise.

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ICO statistics according to Statis Group LLC research

If you’ve decided to launch your own ICO first of all think how you’re going to promote it. Your promotion strategy will define what type of audience is going to see your project and your ICO white paper is going to be the red flag for this audience. So how to write ICO white paper? Let’s find out.

1. Define the issue that you are solving

Whether you are working with huge investors at the private sale stage or with many small holders at the crowd sale, the first thing they are going to look at it in your ICO white paper is the issue that your project helps to solve. This should be a real problem that troubles of the minds of many people. Once again, let’s repeat 2 key points: the reality of the issue and the huge audience that realizes this issue and looks for a way to resolve it.

2. How you are going to solve this problem

The second part of your ICO white paper should describe in details the solution of the problem. It should include the following items:

  • Market analysis
  • The prototype of your project
  • Development roadmap

This is the most important part of your white paper as this is where you have to reassure your investors to spend the money on your project development.

3. ICO token metrics

This is also a very important part of any white paper as it gives investors understanding how much profit they can expect to get. Define the following metrics:

  • Amount of tokens to be issued, will the tokens be available for mining or will they be emitted after the launch.
  • Token price. How it is going to change during the ICO. In most cases, the price rises, but some ICOs prefer to launch the so-called Dutch auction when the price gets lower closer to the end of the token sale.
  • Token distribution model: how much goes to investors via private sale, to the team and to the crowd sale. What parts of the tokens will be locked and for how long. Without token lock, huge holders get hands on manipulating the price of the token.

Token metrics of the project youtoken.io

4. Your team

Who are the members of your team? How huge is their experience? In what famous companies they worked before joining your team?

Your investors will want to know that the project is in reliable hands and that the team knows what they do. Say a few words about each member and place the link to their Linkedin profiles to prove that they are real.

5. Your advisors and partners

Mention the gurus of the industry who help you launch the product. These guys should also have a full description of their experience and the links to their LinkedIn profiles.

One of the most popular advisors who has shined in quite may white papers is Vitalik Buterin. This is a really significant person in the crypto world and most projects are eager to even lie only to stand in the blaze of his glory. But lying is a bad practice, so better don’t mention his persona unless you’ve really managed to get his direct advice.

The most popular advisor does not give advice anymore

The most popular advisor does not give advice anymore

Conclusion

You can find many ICO white paper templates on the web. Apart from free templates that are also paid ones with the prices varying from a few dozens of dollars up to several thousand when you order a white paper design from the third parties.

How to write ICO white paper

An example of ICO white paper template

Of course, it would be much better if you learn how to write ICO white paper yourself because nobody else will know you’re probably better than you do. But if you have funds and the time is short why not to outsource it to the guys who know the area better than you?

Apart from the white paper, any ICO needs a payment gateway to raise the funds. And while you can accept investments and distribute tokens individually for every huge investor, you will still need an automated solution for the crowd sale.

BestRate offers an ICO payment tool that can help you solve this task. With our tool, you can accept payments in FIAT and 80+ cryptocurrencies that will be converted to Ether at the best rate and forwarded to your ICO wallet. Sign up and test it for free now!