The first thing blockchain enthusiasts engage with when they hear about a new blockchain startup is its landing page. Here, they should find links to all the important documentation that relates to the project, such as a white paper, a one pager, and a presentation.
[Note: This is a guest article submitted by Nick Evdokimov]
All of these are vital to a potential user or investor’s evaluation. A white paper should provide information on the token economy, the business model, and the team of a blockchain startup. Accordingly, the one pager should be a short “elevator pitch” that summarizes all the important aspects that the white paper covers at-length. Then we have a presentation, which is somewhere in between the two. This should provide investors, funds, and final token holders with an overview of the startup’s business and how the token is connected to it.
However, there are other aspects to take into consideration before making any ICO investment that are easy to forget. Perhaps the first of these is the legal opinion, which should be provided by the lawyers who have counseled the startup. They should inform potential investors on the token’s compliance with all the relevant regulations.
It doesn’t matter if it’s a utility token, or a security token, it’s important to have a document that confirms the legal stability of the business and the ICO itself. Besides investors, this legal opinion will also be requested by blockchain exchanges prior to any token listing.
Documentation on where the issuer of the token is registered is also necessary. This should be requested from the startup and analyzed carefully. For instance, if a token issuer is registered in the Singapore jurisdiction, it’s wise to check the registration numbers and make sure that the project is actually on this registry. It’s a good way to confirm the startup’s transparency and make sure it’s not a scam or a fraud.
Another thing to search for is if