An Introduction to EOS Air Drops
EOS air drops have become the main topic of discussions across almost all online cryptocurrency communities. EOS air drops represent an easy means for getting some free money. Moreover, the EOS air drop model is expected to gradually replace the Ethereum based ICO fundraising model. Cointelligence is offering you a simple guide that will introduce you to the new era of EOS air drops.
EOS air drops have inarguably become one of the most discussed topics among members of the crypto community during the past couple of months. The discussions are heating up even more, as the highly anticipated launch of EOS’s mainnet has just taken place on June 14th. Following this date, the EOS Ethereum based ERC20 tokens, which were mainly used for fundraising, are being replaced by tokens on EOS’s mainnet. Inifinito Wallet has officially become the first ever wallet one can use to manage their assets on EOS’s mainnet. As the mainnet has just gone live, a large number of EOS air drops are anticipated to take place during the next few months. So, if you own EOS, you might be entitled to receive tens of other tokens that will be air dropped, i.e. freely distributed among EOS holders, during the next few months.
Throughout this article, we will introduce you to EOS air drops and explain how they can represent a business model that can gradually evolve to outgrow Ethereum’s ICO model.
What are EOS Air drops?
In the world of cryptocurrencies, an air drop is the distribution of tokens/coins among users of the platform or investors, provided that they complete a few simple steps required by the founders of the platform. In the early days, air drops were usually referred to as giveaways, and users were awarded free coins for just sharing info about the project on their social media accounts, writing articles, or participating in any other online activities that helped market the coin and introduce it to new users.
EOS is a decentralized application platform that can be used to create cryptograpghic tokens, similar to Ethereum. There are already tens of projects that have chosen to issue their tokens on EOS’s blockchain including Atidium, Cetos, Edna, Everpedia, EOX, HoursPay, and many more. Via EOS air drops, these tokens are distributed among holders of EOS. Some air drops are automatically added to EOS’s wallets, some require registration at the project’s website, while others require a minimum balance of EOS to be present in the wallet to receive the air dropped tokens.
EOS drops represent a great opportunity to take some free chips off the table, if you own some EOS. This can turn out to be a fortune, if some of the tokens air dropped on you gain popularity and their value skyrockets. Let me give you an interesting example: those who registered for ONT’s newsletter last February were entitled to receive 1,000 ONT tokens. As the price of ONT is around $5 today, this means that those 1,000 tokens are now worth $5,000. Can you believe it? $5,000 for just signing up for a newsletter? It all comes down to the magic of air drops.
How can EOS air drops help project founders raise money?
Many crypto experts believe that EOS will outgrow Ethereum as a platform for decentralized applications (Dapps) and issuance for tokens for multiple reasons including:
- EOS has an innovative governance model that puts full blockchain control into the hands of the token holders.
- EOS’s transactions require zero fees.
- EOS’s blockchain promotes an infinite level of scalability.
- EOS supports free blockchain storage, which will set the stage for website hosting on the blockchain.
- EOS’s platform boasts simple tools for creation of the best Internet 3.0 and DAO Dapps.
With Ethereum’s ICO crowdfunding model, anyone can create a smart contract, issue millions of ERC20 tokens, set an arbitrary price for these tokens, and then sell them to the public. During the ICO, when the tokens have no use, token buyers are just buying worthless computer code, so they are actually spending their money on nothing. Investors spend their money on tokens, with the hope that the project’s team will use the raised money to complete development of the project. That’s when the bought tokens will have real use, and hence have real value. As such, if at any point, the ICO’s team decide to halt their development plan and disappear with the raised funds via an exit scam, there is nothing the investors can do, as they will be left with nothing but useless tokens, whose price will plummet to zero in no time. This explains the large number of scams associated with the ICO model during the past year.
EOS air drops seem more safe for investors, as they will receive the air dropped tokens for free, but how can it help the project owners, doing airdrops, raise money for the project?
To answer this question, I will present you with a hypothetical situation. Let’s say that a project owner uses EOS’s blockchain to issue 100 million tokens, that he named TAJD tokens. After launching of the project, the TAJD tokens are valued at $0.10, so his 100 million tokens would be worth $10 million. He decides to giveaway 20 million TAJD tokens via EOS drops. Practically, this means that after giving away those 20 million tokens, his capital would come down to $8 million. However, the usual scenario with air drops is that the internet becomes flooded with posts and social media statuses about the air drops, which means that more people will be introduced to the token, wallets will be opened, transactions will be executed, and the features of the token will be appreciated by the public. A couple of months later, the price of TAJD tokens rises from $0.10 to $0.14. So, the project owner’s remaining 80 million TAJD tokens are now worth $11.2 million. So, air dropping 20% of his owned tokens helped him raise $1.2 million, without selling his tokens. That’s how the air dropping fundraising model works.
Upcoming EOS air drops to look forward to:
There around 30 EOS air drops planned to take place during the upcoming couple of months. The following are the most promising:
- Lab Ledger is a blockchain based ecosystem for researchers that will include a database for scientific papers. The air drop is planned to take place on June 21st.
- HoursPay is a payroll portal that utilizes the blockchain technology to securely exchange data with global payroll vendors. The air drop is planned to take place on June 30th.
- Trybe is a blockchain based platform that hosts educational content about crypto in the form of lectures, courses, training videos, etc. The air drop is planned to take place in August.
- Atidium is a decentralized application for payments and budget managements. It is planned to take place on June 28th.
- CETOS is a blockchain based platform for the healthcare industry. It is planned to take place some time between next June and July.
- EDNA is a blockchain based database for the DNA structure and genes of individuals. Its launch date is yet to be determined.
- EOSBet is a blockchain based online gambling platform. Its launch date is yet to be determined.
- HireVibes is a crowdsourcing decentralized application based on the blockchain technology. It is planned to take place in Q3 2018.
- ONO Social Network is a decentralized blockchain based social network. It is planned to take place on June 30th.
- EOX is a decentralized blockchain based e-commerce platform. It is planned to take place in June 30th.
Do your homework and take part in some of those upcoming EOS air drops. Who knows? Maybe one or a few of the next air drops you receive will be your ticket to a wealthy future!
Buying your first bitcoins – A simple guide
The popularity of bitcoin, and cryptocurrency in general, has skyrocketed during the past couple of years. The soaring demand for cryptocurrencies has driven their total market capitalization to the moon, exceeding $300 billion at the time of writing this blog post. Even though many people might be tempted to buy bitcoin, the apparent complexity of the process of coin buying and storing renders some reluctant to test new waters.
In this blog post we will present you with a simple guide that will walk you through the process of buying some bitcoin and storing it in your very own wallet.
Creating an online bitcoin wallet:
Before you buy bitcoin, you have to set up the wallet which you will use to store your purchased coins. A wallet in the bitcoin ecosystem is similar to a bank account. Your bitcoin wallet is what you will use to receive, send, and store your coins. There are two forms of bitcoin wallets: software wallets (bitcoin core or desktop qt wallets) and online wallets. Software wallets are inarguably more secure than online wallets. However, using software wallets can be rather hard especially for newbies, who might completely lose their stored bitcoins if they fail to properly store their private keys. As such, for the purpose of this guide, we will show you how to setup an online wallet from blockchain.info.
Blockchain.info is by far the best and most secure online bitcoin wallet provider. With Blockchain.info, you have full control over your coins’ private keys which are never stored on the service’s online server. You can use your wallet to store, send, and receive not only bitcoin, but also ethereum and bitcoin cash.
To create your wallet, follow these simple steps:
- Go to Blockchain.info website and click on the “GET A FREE WALLET” button on the top right corner of the homepage.
2. On the signup page, enter your email and password. Don’t use words or phrases, because these would make it easy for hackers to crack your password. It is highly recommended to use long, randomly generated passwords that include letters, numbers, and special characters. There are many online services that can generate random passwords for you. I recommend using Random.org for generating your password. Generate a password with a minimum of 20 characters, and save it in a safe place. Remember that if you lose your password, you may lose access to all coins stored in your wallet. After entering your password, and re-entering it in the “Confirm Password” box, press the “Continue” button.
3. Right after you press the “Continue” button, you will be logged in automatically to your wallet’s homepage, as shown on the below screenshot.
4. After signing up, you will receive an email from blockchain.info. You have to verify your email by clicking the “YES, THIS IS MY EMAIL” button as shown on the below screenshot. The email will also include your unique wallet identifier, or your wallet ID, which you will use to log in to your wallet. Store your wallet ID in a safe place and don’t share it with anyone.
5. You have successfully now created your wallet. Now, let’s sign out and re-login to make sure that everything is working fine. Press the “SIGN OUT” button on the top right corner of the page. You will be prompted with a window that will present you with your backup recovery phrase which you will use to recover your account if you ever lose your password. The backup recovery phrase is composed of 12 words. Write it down or print it and keep it in a safe place.
6. After writing down your backup recovery phrase, press the “Final Step” button. You will be prompted with a window asking you to enter four random words from your backup recovery phrase as shown on the below screenshot.
Enter the requested words and press “Finish”. A “You have backed up your recovery phrase” message will show up. Press the “Close” button as shown on the below screenshot.
7. Now, press the “SIGN OUT” button again. The login page will appear. Now, enter your Wallet ID and password and press the “LOG IN” button, as shown on the below screenshot.
8. After logging in, your wallet’s Dashboard will show up. You’re now ready to receive bitcoin. To identify your wallet’s bitcoin address, press on bitcoin’s icon on the column on the left side of the page. On the page that shows up, press the button marked “Request” on the top, as shown on the below screenshot.
9. A window will appear displaying your bitcoin address as shown on the below screenshot. You can press the “COPY” button to copy your bitcoin address and then save it in order to use it to receive bitcoin. You can also use the “View QR Code” button to display your bitcoin address’s QR code and use it for simplicity.
You have successfully setup your bitcoin wallet and you’re ready to buy your first crypto.
Buying bitcoin via Coinbase:
Now, we will use Coinbase to buy bitcoin. Coinbase is one of the world’s most popular and secure cryptocurrency exchanges, where you can buy bitcoin using credit/debit cards and bank wire transfers.
1. Go to Coinbase.com and press the “Sign up” button. You will be prompted with a signup form, with two account types: “Individual” and “Business”. Choose the “Individual” account type, and fill in your first name, last name, e-mail, and password as shown on the below screenshot. Use Random.org to generate a random password like you did with your wallet’s password to make it hard to crack, too. After filling in all the details, press the “CREATE ACCOUNT” button.
2. A window will show up asking you to verify your email, as shown on the below screenshot. Go to your inbox, and open the “Verify your email address” message sent to you from Coinbase and press the “Verify Email Address” button.
3. After successfully verifying your email address, login to your account using your email and created password. When you sign in for the first time, you will be asked to link your mobile phone to your account, as shown on the below screenshot.
4. After entering your mobile number, an SMS will be sent to your phone including a special code. Enter the code and press the “Submit” button as shown below.
5. Now, click the “Add Payment Method” button at the top of the page, and then on the payment method selector choose “Credit/Debit Card”. When doing so, you will be asked to complete a photo ID verification process which usually takes no more than 24-48 hours. Next, you will be prompted with the card verification screen, where you will have to enter your credit/debit card information including name, address (it should match the card’s billing address), and CVV code. Coinbase will ask to make two pending charges to your card. Accept the two charges, and then log in to your card’s online account and write down the exact amounts of the two charges made, and then enter those amounts into the appropriate boxes on the card verification window. Now, you have successfully added your card and you will see a window marked “Credit/Debit Card Added” with a button that says “Buy Digital Currency”.
6. Now, you can buy bitcoin with your debit/credit card. Press “Buy Digital Currency” and you will be prompted with a window as shown on the below screenshot. Enter the amount of bitcoin you wish to buy, or enter the equivalent amount in USD. On the below example, we bought $100 worth of bitcoin, which equals 0.01479509 BTC at the current bitcoin price ($6,759). Then, press the “Buy Bitcoin Instantly” button.
7. The amount of bitcoin you purchased will instantly appear in your bitcoin wallet. You can now move it to your Blockchain.info wallet by pressing the “Accounts” button on the top menu, then clicking the “Send” button under your “BTC Wallet”. You will be prompted with a window to enter the amount you want to send and the address you want to send the funds to. Double check that you have correctly entered your blockchain.info address and the amount you want to send before clicking the “Send Funds” button, confirming the transaction’s details and completing the sending process.
Within a few minutes, your bitcoin funds will show up on your Blockchain.info’s wallet along with the number of confirmations it received.
This was a simple guide to help you buy bitcoin, to start exploring the world of cryptocurrencies.
(Cointelligence’s disclaimer: Cryptocurrencies represent a very risky investment, so always trade cautiously and never invest more than what you can afford to lose)
The Complete Guide to ICO Community Management
Successful ICOs require a multi-faceted approach to marketing. High profile advertising bans from Google, Facebook, Twitter, LinkedIn, and MailChimp are squeezing the ICO marketing channels available. However, what the bans mean is that other methods of marketing an ICO will need to get more attention. There are of course many conventional and non-conventional marketing channels that can be utilized, but one particular element is gaining a lot of traction and importance in ICO marketing strategies: the role of an ICO Community Manager.
What is an ICO Community Manager?
If there was just one platform in the world for people to exchange information about upcoming ICOs and cryptocurrency news, it would make marketers’ lives a breeze. However, that isn’t the case, and marketers’ lives are not a breeze. While there is no unanimously agreed upon definition of the cryptocurrency community, it can be loosely described as a vast and widespread group of people who connect via different mediums in cyberspace. It is the responsibility of the ICO community manager to engage and optimize the community through the mediums favored by the cryptocurrency community.
The channels that fall under the responsibility of the ICO Manager vary, dependent on the company size, its budget, its overall marketing strategy and the ICO manager itself. However, an ICO community manager should be looking to establish a presence and the transparency and trust needed for a successful ICO across as many channels as possible.
Crypto Community Channels to Manage
Channels vary in popularity from country to country, but the main channels favored by the crypto community are:
Telegram – Warmly embraced by the cryptocurrency community from its very outset. This platform, in the process of its own ICO, has a “secret chat” facility which allows conversations with end-to-end encryption and other security options. Telegram is an important part of a community manager’s strategy and it is much more direct than other channels and provides the opportunity to pinpoint key messages so that new users are always kept up-to-date.
Reddit – The Reddit crypto community is a hard to win over crowd making Reddit management one of the more challenging aspects of the Community Manager role. Generally, the Reddit community is a knowledgeable and unforgiving group, but gain their trust with transparency and regular engagement, and you have the ability to make an ICO.
Quora – This content-based channel requires the management of good quality content and keeping on top of updated threads. Again, a knowledgeable community and a community that should be catered to.
Facebook – Although ICO advertising was banned from Facebook in January, community building and maintenance through pages and groups are still allowed and popular. Posting and commentating in other crypto groups also gains exposure. Facebook has over 2.2 billion active users and is too big for a community manager to ignore.
Twitter – ICO advertising bans came into effect in March, but Twitter is very popular among the cryptocurrency community. By using hashtags and tweeting three times a day, it is possible to draw attention and convey your ICO message.
LinkedIn – Another of the social media platforms that implemented a ban on ICO advertising this year, but still popular within the crypto community. There are knowledgeable, professional people in crypto and blockchain groups that have tens of thousands of members, all of which can be accessed and engaged with for free.
Steemit – A Reddit style content sharing platform that is becoming more and more popular with the cryptocurrency community. An ICO manager will need to post quality content and engage with other users.
BitcoinTalk – Probably the biggest and most important of all the specialized crypto forums. A community manager will need to engage with the forums to promote their ICO project. Regularly updated, it is one of the more labour intensive community channels to optimize, but an excellent channel for coverage.
Medium – Similar to Quora in that it is used for publishing important content that conveys the information and message you want to get across.
The Difference Between an ICO Community Manager and a “Regular” Community Manager
There is some definite blurring in the roles of an ICO community manager. What’s the difference between what a social media manager does versus a community manager, and what’s the difference between an ICO community manager and a “regular” community manager? Well, a lot depends on ICO management strategy and its intended presence in particular channels, and a lot depends on the actual person.
When one thinks of a “regular” community manager, someone who posts on Facebook, Twitter, Instagram, Pinterest, and LinkedIn springs to mind. Community managers are generally more social media centric with some forum posting. Regular community management is about engagement and being able to convey and respond to messages.
ICO Community management, on the other hand, requires a much more hands-on approach to community management, and demonstrate a far higher level of expertise and knowledge than “regular” community management.
The elite community management required in ICO community management needs a willingness and an ability to engage across many platforms throughout the whole ICO process 24/7, across different time zones.
The ICO community manager has two very clear tasks which a regular community manager probably doesn’t have: Pre-ICO and Post-ICO. Pre-ICO, the ICO community manager has the responsibility of building trust, gaining exposure, and cementing brand identity. How the information is conveyed and how communities are engaged can make or break an ICO before its launch. Post-ICO is just as important for an ICO community manager, as they have the responsibility to maintain and moderate social media ICOs channels, follow up on the shares and comments, and answer all the questions or queries community members may have.
In the immediacy of an ICO crowdsale, too often a post-ICO strategy is put to one side. The ICO community manager is vital for keeping engagement levels up and keeping the community informed. Keeping the community engaged is crucial for any next phase of growth in the ICO campaign or blockchain-related project.
Qualities Needed for an ICO Community Manager
Now, no one is saying that ICO Community Managers need to have super-human powers, but there are certain qualities needed to be a successful ICO Community Manager.
Dedicated – Community Management requires a 24/7 committed approach.
Knowledgeable – This is not a position where you can bluff your way through. You will be expected to be the ‘face’ of the ICO and know everything about the company behind the ICO, including the technical aspects. A strong knowledge of blockchain technology and the crypto world is essential for an ICO community manager to build trust within the crypto community. Try and bluff your way through, and you will get found out very quickly, especially on Reddit.
Patient – An ICO community manager will have to deal with all types of community members and potential investors, some more knowledgeable than others. Also, the ICO community manager will have to answer the same few questions repeatedly on a daily basis – “How much do I get?” and “When are the bounties distributed?” are two of the most common questions an ICO manager will have to answer… a lot! Patience is important.
Communicative – The ability to communicate is essential to the role of ICO community manager. Different messages will have to be conveyed to different groups in different styles, so the ability to get the ICO message across to the right people in the right way is a big responsibility of the ICO manager.
Flexible – Most ICO community managers are forced to wear many hats. Facebook group posting one minute, then posting 1000 word articles on Quora the next minute, requires a degree of flexibility.
Alert – Crypto ICO news comes in thick and fast and it is the job of the ICO community manager to stay on top of the news and events and react accordingly.
Experienced – The key to successfully running a community is being part of the community itself. The ICO manager must know the nuances of important channels like Reddit and BitcoinTalk and ideally be experienced members themselves, to be able to fully optimize valuable the resources.
ICO Community Managers Playing a Bigger Role
In the fast-growing world of ICO consulting which has sprang up alongside the equally booming ICO crowdfunding industry, more importance is being placed on the role of the ICO Community Manager. Simply put, the ICO community manager can make the difference between a successful ICO and a failed ICO and there isn’t an ICO PR agency worth its salt that doesn’t realize that.
There is no definitive role description for an ICO community manager, its tasks and responsibilities vary from person to person and company to company. However, the function and purpose do not differ and the person who sits in the role or roles of ICO community managers will have the biggest impact of all. Get the right person who has the attributes listed above and provide them with the right tools, budget and backing and they can go a long way to help an ICO enjoy long-term success. As the advertising bans intensify and the coin launch calendar becomes busier, the ICO community manager will have more responsibility and more power to make or break an ICO. Therefore, it is essential the right person(s) fill the roll with the right backing given to carry out a defined and widespread ICO community management strategy.
Publish your ICO on Cointelligence to attract new investors today
How to check a whitepaper
A whitepaper is arguably the most important document for any crypto ICO. However, the style and contents of whitepapers can vary drastically. We reached out to several crypto industry leaders to find out what they look for when reviewing a whitepaper. Read their quotes and gain valuable insight regarding what aspects of a whitepaper are considered to be the most important, and what some red flags might be. This post is updated monthly, so be sure to check back to see who else has been added and what their suggestions are for reviewing a whitepaper.
- Ami Ben David, Co-founder and managing partner of SPiCE VC: “We specialize in tokenization, so my initial focus is first to see if the project is suitable for our specific investment criteria – in our case, I’m checking if it is delivering a key building block of the blockchain / tokenization ecosystem that we know is missing, or has room for more players and massive growth, or is it a new revolutionary protocol with some following, or a tokenized business which has a unique edge in the market because of the use of the blockchain or the smart use of a token economy. If the basics are not there, its a quick No for us. But if the story does meet our focus criteria, we look at the team (which we need to talk to anyway to form an opinion), what is their story and the way they choose to tell it, and I try to compare the big vision and big words with how much they actually achieved in terms of execution in the time they had to spend on the project so far. If it all makes sense, I schedule a call.”
- Ofir Beigel, Owner of 99Bitcoins.com: “I make the same suggestions to crypto investors and blockchain startups alike. Look at the team, the tech, and the market. Additionally in the white paper look for an alignment of interest. What are the long and short team motivations for all stake holders? Are the interests of the founders and advisers in parallel with the large investors and are they in line with the users of the platform, protocol or service? Even before the blockchain the old adage of “follow the money” provided an enormous amount of insight. For example: Are the issuers offering discounts or bonuses? Are they transparent about this and are they putting in vesting or lockout periods? Some founders check the box saying “yes we have a vesting period so investors cannot flip the token.” But when that vesting period is only three months and the first deliverable is four months out, that is pretty much worthless.”
- Lou Kerner, Partner, CryptoOracle: “While we take a holistic view of projects, for CryptoOracle, the team is the most important aspect of the Whitepaper. We actually use machine learning/AI to help us evaluate teams. We are also very focused on the problem being solved and the role the tokens play in that solution, starting with, does the solution really require a token (and blockchain)? Then we look at token economics to ensure the token economics align the different players in the ecosystem. Governance is critical for decentralized projects. We also look for realistic roadmaps. For the most part, poorly written Whitepapers are more hurtful to projects than well written Whitepapers are helpful.
- Motti Peer, Co-CEO of Blonde 2.0: “We receive hundreds of whitepapers, and as most investors with little time, I review many of them. With this being said, if the whitepaper does not immediately state the company’s purpose and process, chances of continuing to read them are slim to none. With so many white papers, it’s crucial to remain relevant by stating and emphasizing the clear message of the company and its product. This is the difference that can make or break successful projects.”
- Yaniv Feldman, Co-founder & Chairman, Cointelligence: “Today’s whitepapers are different from what they used to be in the past. Satoshi’s whitepaper was nine pages and was almost entirely technical. Today’s whitepapers are 30-80 pages long and are full of marketing info, roadmap, team and investor offering. While Bitcoin is very different from today’s ICOs, I still try to focus on what matters. I try to understand if the company is solving a real problem, for a real, big-enough, relevant market, instead of just building a “decentralized” solution to the same problem other have solved centrally without any relevant additions (besides so-called decentralization) or a made-up problem that doesn’t really have a real-life, big enough use case to sustain the existence of such a project. Most project fail at this level. If a project passes the first stage, I take a brief look at the team and try to understand if their token economics structuring makes sense (how many tokens, inflation rate, built-in incentives to stakeholders, consensus mechanism, etc).”
- Eric Turner, Research Lead, Messari: “Whitepapers are still the best way to gauge how well a project will execute. I have learned it is best to skip to the end and see who is leading, advising, or investing in the project. With that in mind, start from the beginning and don’t skip the “fluff”. This is often dismissed as marketing speak but can give you a good idea of how realistic the project is. High hopes are to be expected, but if a project thinks they can overtake multiple existing markets or only want to offer a slight change to existing solutions, you should put on your skeptic hat. Be more skeptical if the team and advisors have limited experience in the space. Give the technical details a good read but realize that anything too technical is a distraction. A great whitepaper will address the “why” and the “how” of a project. Most projects today want to be the AWS, Uber, Airbnb, eBay, Facebook, etc., of the decentralized world. The “why” is how you will be better than these solutions. The “how” is even more important. The best whitepapers will give details on how their solutions will outpace competitors, gain a community, and incentivize developers. A detailed roadmap is something to look for. Even though whitepapers are early-stage ideas, having a defined timeline for development is important. If you really want to understand a project look at who is running it and map that against how feasible it is they can execute on their goals.”
- Melanie Mohr CEO and founder of YEAY, Creator of WOM: “When reviewing a whitepaper, I look for the following: simple, concise language that cuts to the point quickly – there’s absolutely no point filling up the word and page count for the sake of the thud factor. A well articulated and watertight vision – I need to see a clear and inspiring concept that I can get behind. Credibility and expertise – I need to feel faith in the team behind the idea. User experience – does it have a good UI/UX? Technical detail – what’s actually being built and what’s the go-to-market strategy. It’s easy to say “this is x, built on the blockchain, to disrupt y” but how will it actually do this?”
- Martin Wos, Co-Founder, Co-CEO and CVO of Block Stocks: “Firstly, the validity of the business model. The model should make economical sense. If an idea already exists, not important if off- or on-chain, a new idea have to be 10x better. Just because an idea is decentralized, does not attract clients. Think from a client’s perspective. Then, start looking at how the technical components (technical whitepaper) and the token sale structure. Under which conditions does the currency appreciate in value and why? What are the underlying drivers and do I fully profit from it or are there any constraining conditions? Also do research about existing business models. What are the differences, advantages and disadvantages of similar business models.”
- Evgeny Ponomarev – Co-founder and CEO of Fluence: “First of all, you have to understand the difference between the Whitepaper and Primer. The first is a technical document while the latter is for pitching. Since the decentralized technology landscape is yet full of “terra incognita”, don’t expect the team to answer all the questions, but at least they must understand the challenges that exist and the obstacles they face. The best way to understand how a proper whitepaper looks is by reading ones made by great, successful projects: IPFS and Filecoin, Plasma, TrueBit, Polkadot — these served as an inspiration for our team.”
- Dr. Omri Ross, CEO of Firmo Network: “When reading a whitepaper, I always look for academic rigor. Is the paper describing an existing product or does the team have the skillset to execute on the vision depicted in the paper? Does the product cater to a relevant niche and is the business model and go-to-market-strategy carefully designed to suit the customers needs? If the product is distributed or decentralized, has appropriate measures been put in place to provide a feasible governance model?”
- Sharon Shineberg, In-House Blockchain Maximalist at Blonde 2.0: “When I first read Satoshi’s white paper, I could not sleep many nights. I was up restless and obsessive over bitcoin. In my experience, I can only compare this occurrence to the ‘rabbit hole effect’ from Alice in Wonderland. From afar, there’s a dark hole in which another world exists; once you’ve stepped foot in the hole, there is no turning back. Curiosity is contagious, and this is the exact effect I am looking for when reviewing white papers.”
- Dror Futter is a Partner at the Rimon, PC law firm: “Whitepapers should provide a description of the regulatory compliance of the token. At this point in time, any ICO claiming to be a “utility token” should be viewed very skeptically. Potential token buyers should be very leery of overinflated legal claims. For example, many ICO’s claim to be issuing “SEC compliant” tokens with little explanation of the basis of this claim. This is critical because at this time, there is not a single ICO that has received the express approval of the SEC. In other instances, whitepapers identify the prestigious law firms ICO’s have hired and leave it unclear what advice they received. Our firm was approached by an issuer three days before their ICO after their global law firm withdrew from the representation. Their whitepaper still said they had consulted with the firm – which, while technically true, was also misleading. Potential token buyers should also look for details about how the tokens will trade after issuance and what the issuer will do to ensure ongoing regulatory compliance. While ICO issuances have gotten all the press, the after-market trading poses as many regulatory issues.”
- Jonathan ben Shimon, CEO of Matchpool: “It is more important to look at the formation and the architecture to determine whether it is original or not. I care more about new architecture and existing technology than about those who are trying to force the economy on our business.”
- Liron Langer, Chief Investment Officer at Nielsen Innovate: “Based on experience and involvement in subsequent projects, the most important factor is the team, and in particular, do they have true understanding in Blockchain technology and DLTs (Distributed Ledger Technologies), and fully comprehend the token usage, utility and value model and whether the cost of the challenge they address significantly lower than the benefits the adoption will provide. In addition, it’s important to look at what the team has achieved so far, the use of funds and how the economy will interact with the token once it hits the market. I am glad to see that the market evolves slowly but surely, towards addressing real challenges in a much more professional manner.”
- Jon Buck, President, B&B Content Management: “Think of a young person going on their first date. They spend hours making sure that they look their very best – picking outfits, fixing hair, agonizing over every detail. Why? They want to attract the person they are meeting. The same is true with a whitepaper. Investors who look at a whitepaper are ‘dating’ the company. To attract the best investors, the whitepaper has to look its best. Typographical errors, broken English, punctuation and grammar mistakes – these are like massive red flags to investors that the company is not mature enough to even clean up on a first date. If a whitepaper is clean, well written, properly edited, with excellent grammar, it shows a care and consistency that makes a company investment-worthy. Companies that don’t take the time to produce a professional whitepaper only prove that they are not professional, and generally, destined for failure.”
- Adi Karmon Scope, Founder of Fractal Boutique: “When I review a whitepaper, I’m most interested in the token economics section. The reason is that a company must justify the creation of a new token, if it would like to embark on the ICO route. If I’m convinced that a new token is indeed needed, then this means that the idea and eco-system are much larger and more valuable than the company itself which is conducting the ICO. Most of the whitepapers I read are vague about their economy and lack lots of details about how they’re planning on creating intrinsic value to their token. A healthy economy is about creating new value, which is captured via the token and not about only creating artificial scarcity.”
- Chad Pankewitz, CEO of Coinage: “Evaluating crypto and blockchain companies can be done in a similar way to how a venture capitalist would evaluate an investment. Here are a few things that we look for when reading a whitepaper: Will the company’s main product be useful? What problem will the company solve? Do they have a great vision for their company and for their products in the market? Is the product and the technology truly great? Do they have the team to execute the vision? Does the project have traction – in terms of product readiness, users, community, and revenue? Who are their competitors? To be able to do our own research, I want to be able to understand from their whitepaper where they fit in the market; such as, are they a cryptocurrency, blockchain platform, or a protocol? Furthermore, if they are a cryptocurrency, are they a privacy coin, a stable coin, to be used for fast payments or just a storage of value? The more drilled down the categorization is, the better we can understand the competition and evaluate accordingly. Last but not least, longevity is one of the factors that you want to be certain of after reading a white paper: Will the product and company have a good chance of succeeding over the long term in this space?”
- Adi Ben-Ari, Founder and CEO of Applied Blockchain: “There’s an old joke about the physicist, the chemist, and the economist stranded on a desert island with a single can of food. How are they to open it? The economist’s answer is, ‘Assume we have a can opener.’ The joke should be updated for the Cryptoeconomist. Check the technical and token economy assumptions made in the whitepaper, look out for bold assumptions about technology that doesn’t exist, or gaps in the token economy model. A few more important areas to consider are the idea and solution that they are proposing, is the company creating something new, or just building an existing technology? Also, in regards to the token, whilst reading ask yourself, does this solution need a token? Is what they are proposing really a blockchain solution from the ground up, or simply a regular tech startup looking for funding by issuing a token? Most tokens are generally created as a utility token, so the question needs to be, does this serve as a true utility or has the token been added to the solution so they could raise capital through an ICO? And lastly, in terms of competition, is this solution part of a dozen others that are already successful, or is it different enough to add value to the blockchain ecosystem?”
- Tai Kaish, CEO of Wemark: “Traditional investors get a chance to do their due diligence by meeting the founding team and asking in-depth questions. The whitepaper is often the only way for ICO investors to evaluate the company, its product, and future plans. When reviewing a whitepaper, investors should compare the associated risks of the project, to the potential gain. Projects will usually outline the market size and opportunity early on. Realizing the risks, however, is something each investor has to do on his own. Each key factor presented in the whitepaper (team, product, token economies, roadmap, competition, etc.) might hold potential risks and prevent the projects from reaching its goals. Following deep research, investors should support projects that demonstrate the lowest risk along with the biggest potential outcome. It’s great when teams get technical and explain how their protocol works with code samples and architecture flowcharts. It’s easy to get carried away in technical descriptions, but it’s crucial to understand why people will want to use it, not just how it works. For some projects – marketing, sales and UX are more important than expertise in smart contracts or blockchain development.”
- Johnny Kolasinki, Head of Media at XYO Network: “The first thing I look at when reading a whitepaper is the project’s purpose. Are they solving a real problem? Does a blockchain-based solution to this problem make sense? I’ve seen projects that had amazingly innovative implementations of blockchain technology or DLT; however, they were trying to replace existing platforms without actually addressing any flaws in the models that are already in place. If a project is going to compete with existing technology, it needs to clearly lay out how it will either augment or improve upon what’s already out there.”
- Mark Vermeeren, Global Marketing Manager of MobileBridge Momentum – “For us, one of the most important aspects of a whitepaper is that it correctly communicates the value of the service or product. No matter how well written, how awesome the design of the paper is, or how cool the graphics used look, the offer needs to be strong. Additionally, the reasons indicating “why blockchain” or “why an ICO” should provide an understanding of the product or service’s USP, and specify the way it changes the paradigm of its respective market. Naturally, investors and crypto enthusiasts will consider funding a project whose likelihood of success is high; so, in order to properly assess the value proposition, it is important to also detail the competitive advantages, and the specifics that relate the strengths of the solution to the market dynamics.”
- Darvin Kunaiwan, CEO of Crowdvilla: “The first thing that I would look for is the problem area that the project aims to solve. After that I’ll look at the detail surrounding their token economy: what does the token represent, how will the token retain value and how will the token be distributed initially. I’ll come up with my own conclusion on whether this type of token will be considered as securities or otherwise, which then allows me to see whether the project is being done in a legally responsible way. Next I’ll look at the team – not so much on finding hyped up factor (personally I don’t believe ex-big mnc matters much in this case) – but more towards seeing that there are indeed real people fronting the project, and that it is not an elaborate scam. Finally, if applicable, I’ll look at their basic approach from the technical point of view, on whether it makes any sense in achieving what they set out to do.”
- Avishai Shoushan CEO of Carats.io: “When you review a whitepaper there are several crucial issues that must be addressed. For us, the things that are most important for reviewing the project through it’s whitepaper is the order of the content, while looking for the known entity, team and partners who stand behind the project and the token. Another important criteria is the token usability, while asking if there is a real need and use for the token, except for fundraising. The last aspect is the technology and value standing behind. In which stage the company is in, regarding technology if it is deploying, alpha, or beta and what will the token bring considering it’s long term value, beyond of speculation.”
- Ran Avidan, Founder & CTO of Mobilechain: “The first thing I look at when reviewing a whitepaper is ‘The Team’ section. Do they have past experience building and creating a new business in the targeted industry? The Mobilechain team has a lot of experience in the mobile industry, so we try to focus on that in our whitepaper. The next thing I look at is the solution itself and if blockchain is really needed to solve the issue. There needs to also be business potential in the idea. Like every investment, I expect to see a bit of market research and thought into how the solution will make an impact.”
- Barak Ben Ezer, CEO of Neema: “My advice for reading a whitepaper: I’m more interested in projects that solve the three underlying barriers to adoption: (1) interface, volatility and solving the legal status of crypto (what we are doing with SOV.Global), (2) looking for impressive team more so than impressive advisors, (3) explain to me what you’re doing in the first paragraph. The more concise and clear the better. Long convoluted is explanations and lots of fluff are a red flag. I’ve noticed that geniuses are typically people who can explain very complex issues in very clear terms. Satoshi’s bitcoin white papers from the 2009, was nine pages of pure gold. Less is more.”
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