It can be slightly tricky if you have no experience in reading an ICO Whitepaper. The technical terms may seemed a little bit too overwhelming to understand. Nonetheless, never invest in a business that you do not fully understand. The definition of an ICO Whitepaper is an authoritative report or guide designed for readers to understand a blockchain investment. If it’s your first time reading an ICO Whitepaper, you should first take note at the table of contents and see what are covered in the ICO project. The following 4 areas are the important aspect you should know when reading an ICO Whitepaper.
Read the abstract and the executive summary of the report. Understand what is the product that is being brought into the market. Understand why does the product exists and why it is being proposed? Read the problems that they have define, the current issues, it could be business-related, or market-related or technology-related, etc.
Review their market demand for the product and identify whether its market is big enough to have its potential. Do research to determine whether there are people who wants to buy or use from what is being offered to them. Analyse their competitors and study the current solutions that they have integrated. Competitors could be using or trying to solve the issues with similar technologies. You will soon find reasons whether their solutions are good enough or not for the cases that you’ve encountered.
Check out their token distribution section and find out what are you getting in exchange for your investment. What is the total supply for the distribution and determine the amount of percentage that you will be receiving from the layout. Find out how to utilise the tokens upon purchase. Your decision to invest should be based on how crucial the problems are currently and how the proposed technology and its token are aiding its users.
Team & Advisors
Take a look at the team that is leading the ICO project as well as the advisors that are bringing the project to the market. Rate them by their experience and what roles do they have in the development of the project. An average idea that is led by a strong experience team is always better than an outstanding idea that is led by an inexperience team.