The importance of the whitepaper for the launch of a cryptocurrency

Since the birth of Bitcoin in 2008, the exponential growth of the crypto sector, the cryptocurrency market, and the importance it has gained in the world economy, has gradually made all the token projects developed in blockchain, adopt self-regulatory measures, which provide certainty and solidity for the life of a crypto project in the market. The importance of the whitepaper for the creation of a cryptocurrency is indisputable, since parallel to its development, the operational parameters and all the elements that make up this document, create the scaffolding that will give life and course to a cryptocurrency throughout his life.

Traditionally used in the technological field, whitepaper are the equivalent of an operating manual that provides investors with information about the characteristics of a cryptocurrency, and how it is project is designed to provide a concrete solution to a problem. It is in simple terms an operational, theoretical manual and the main tool of crypto marketing.

There is no specific format for writing a Whitepaper, however, almost as a rule, they all have a structure that begins with the definition of the purpose as a prologue, followed by a detailed description of the problem to be faced, the technical solution and a description of the operation of the token, a theoretical development of how the project complies with various phases and finally, an executive summary that raises and endorses why the developed token is the best option for solving the problem.

Do all crypto assets use the same whitepaper format?

It all depends on the nature of the cryptocurrency, although more or less all the projects use a similar format, the writing of a whitepaper for cryptocurrencies depends on whether this asset will be a regulated or unregulated financial instrument. If so, there are mandatory parameters that the whitepaper must comply with, specifically regarding the applicable legislation.

In the case of an unregulated cryptocurrency, the creation of the whitepaper with the fundamental information of the token is still sufficient. Despite this, the intervention of financial or governmental regulators and other institutional actors, make elements such as “sale restrictions”, legends of securities style “or” risk factors “increasingly common elements in the creation of a whitepaper for crypto.

Whitepaper writing for crypto

Whether or not it is a regulated cryptocurrency, the writing of the whitepaper is the fundamental basis for the development of a crypto project. Especially during the last two years, the emergence of new cryptocurrencies as a safe trading alternative, detached from fluctuating central banks, has grown exponentially. Even before the COVID-19 crisis, and the resulting drop in supply chains, investors who used to buy stocks found cryptocurrencies an effective investment platform.

Despite the myths that still surround the role of cryptocurrencies, trust in them is gradually gaining ground in different productive areas around the world. The competition, although wide, is not too great to make it difficult for a cryptocurrency to achieve stable and remarkably accelerated growth. That is why the drafting of a whitepaper for cryptocurrencies is elementary because, among other things, in addition to its format, it represents the document that will distinguish a crypto project from among thousands more.