Most companies exist to solve a problem in society. To involve other parties, founders need to educate potential shareholders and users. The information describing how the solution functions are called a white paper. Therefore, a white paper is very important for the growth of a start-up.
What is a Good Crypto White Paper?
A white paper needs three components: A problem, a solution and an author. The white paper makes for an excellent starting point when searching for projects to invest in. Therefore, any project that does not have a white paper is most likely a scam. However, whitepapers have qualities, and you can differentiate between a good and a bad one.
1. Linear and Logical
A white paper must have good communication. The paper must attract the right readers and engage them. Additionally, you need your reader to be convinced. Hence, your paper needs to be informative. White papers that do not follow this critical rule become boring fast.
2. Catchy and Creative Title
For example, the famous Bitcoin white paper title reads, “Bitcoin: A Peer-to-Peer Electronic Cash System.” This title was eye-catching from the get-go and would entice a reader to dive in.
3. The 3-30-3 rule
This is a writing rule which works like this: In the first 3 seconds, the reader must develop the appetite to read more. In the next 30 seconds, the reader thinks of whether to read more or not. The introduction will determine if the reader continues to the main body. If the reader has gained your attention, you have 3 minutes to drive your point home.
Who is the Audience for a Whitepaper?
White papers are written for three groups of people. The three groups have one thing in common: They are all stakeholders. However, they are of different types.
The first is strategic stakeholders. These ones are want to implement the solutions. They are primarily interested in the financial gain of the company. Most of the different types of investors fall into this category.
The second is the technical stakeholders. These are more interested in the nitty-gritty of the solution. They want to have a low-level understanding of how the solution functions. Developers fall into this group.
Finally, the user stakeholders. This group includes people who use the solution and are more interested in learning about it and increasing use-cases and user-base. You can find investors in all three groups.
Therefore, a whitepaper must be all-around to capture the interest of these parties.
In summary, a white paper aims to inspire confidence in the reader. Most projects in the crypto space have white papers. Some of the most famous in the space include the Bitcoin whitepaper, the Ethereum whitepaper, the Chainlink whitepaper, and the Unibright whitepaper. Other newer projects with white papers include Galaxy Heroes Coin and CryptoZoo NFT platform So, if you are thinking of investing in a project today, get your hands on their white paper. This is because it just might save you from making a big financial mistake.