How to write White Paper for STO: Step-by-Step Guide

Hello everyone! I am Vladimir Hovanskiy, a Google Adwords manager at Platinum. Our team is already a global leader in providing one-stop solutions for ICO projects — from marketing, PR, compliance, consultancy, audit to legal.

What is STO white paper

White paper is a key document for any STO project. It should describe the essence of the project in simple terms for potential investors. Even without deep knowledge in blockchain or cryptocurrency people should be able to get answers for such questions about STO project: will it be useful? How will it be implemented? Will it be profitable? In contrast to the ICO white paper, the STO white paper should have a section describing the legal side of the project which called “Legal Disclaimer”.

Platinum team advises: if you want your white paper to reveal all the important questions for potential investors and to be convenient for research, you should adhere to certain standards and tacit rules when writing white paper for STO. Let’s discuss these points in detail and create a template for the STO white paper.

The difference between the STO and IPO

The STO token can have the same characteristics as a classic share of a company that has passed through an IPO. Platinum team thinks that it is much simpler to buy STO tokens than stocks: it is enough just to pass KYC, only for US citizens it is still also necessary to provide an income statement. And you can store these tokens on any personal device like a PC, smartphone or a hardware wallet. On the other hand, it is much easier for a business to conduct an STO than an IPO. An IPO conducting usually costs more than a million USD, but for an IPO 50,000 USD may be enough. There are even platforms that help to conduct all stages of the STO from start to finish.

How to write a white paper for STO

Good white paper should not be too long or full of scientific formulas. An investor will hardly consider this STO as a possible investment if he does not understand the essence of the project or does not want to read out the basic information. The best white paper should be understandable for those, who have only the most basic knowledge’s about the blockchain and cryptocurrencies.

On the other hand, STO white paper should include all crucial information for the most sophisticated crypto investors. If the potential investor do not find a description of some important topics for the STO, he may decide that this project is poorly thought out and does not worth attention.

In fact, white paper is read by an overwhelming minority of investors, less than 10%. But those who read are typically experienced and large investors who have a great influence in the ICO / STO investor’s community.

Therefore, you should stick to a certain way of structuring information in a white paper for STO.

White paper template

The template for the best STO white paper should include the following components:

• Title page

• Content

• Abstract

• Legal disclaimer

• Description of the problems that your project solves and of the relevant industry as a whole

• Project description

• Marketing analysis

• Technical project architecture

• Tokenomics and STO process description

• roadmap

• Team Members and Advisory

Let’s talk about each of these elements in detail.

Title page

It includes the logo, the name of the project and the inscription “White paper”. Sometimes includes a date. The first impression is formed immediately. That why it makes sense to pay attention to the logo design.

https://i.gyazo.com/e7e91ac82728944dc120ff9810ca6c31.png

Content

Contains links to all sections and allows a quick evaluation of the white paper content. Experienced investors can understand the level of the document and its weaknesses only by reading the content page.

Abstract

Try to outline the essence of the project on one or two pages. It should be brief and clear. If the investor does not like the abstract, he would not read white paper further or invest in this STO.

Legal Disclaimer

This section should be written by a legal company on the basis of information about the STO project.

Such moments should be considered:

  • Where the STO project is registered?
  • Where the STO token is registered (or will be registered) as a security?
  • The benefits of a token. For example, it can be only the right to dividends or also the right to a company ownership and or even voting rights.
  • List of countries whose citizens are allowed to participate in this STO. Regulators in different countries have restrictions for their citizens to invest in countries under sanctions.
  • Profit expectations and risks. Description of the mechanisms for obtaining and distributing company’s profits and possible risks.
  • Privacy Policy. You have to inform the investors how their personal data will be used. The EU introduced the General Data Protection Regulation, according to which any legal entity is responsible for the received personal data of EU citizens even if it is not registered in the EU.

Description of the industry and the problems that the STO project solves

This section briefly describes the industry as a whole and the unresolved problems that exist today. The investor must understand that these are real problems, which solution will help to reduce the cost or speed up business processes. But problems should not be too complicated or too abstract.

Project Description

This section details how the problems identified in the previous section will be resolved.

Platinum experts think that the following topics should be clearly described:

  • Project Goals
  • Tasks that will lead to these goals
  • Social and commercial significance of the project
  • Project Architecture
  • Description of existing developments. MVP is very desirable.
  • Use cases for the final product

This is the most difficult and important white paper section. It requires the combined efforts of developers, blockchain experts, business analysts and marketers.

Marketing Analysis

Platinum advises you to describe in detail the current market realities, and why your STO project will be demanded by the market. If nobody sees described problems and does not try to solve them, then the question of their urgency arises. Therefore, it is necessary to conduct research and find other projects that have solved or are trying to solve similar problems and give a strong reasons why your project will be more successful than its competitors.

Technical architecture

This is a critical section despite the fact that ordinary investors are unlikely to read it. But if there are significant mistakes in section makes, it will still become widely known and projects ability for the technical implementation will be in doubt. The information stated here must be double-checked by a technical specialist.

Tokenomics and description of the STO process

Description of the blockchain that you used, the token standards and the entire STO process: how many investments do you plan to rise, how many tokens will be distributed, are there any token locks, how many tokens will be generated (circulation supply and total supply), and are there any token inflation algorithm?


infographic sample for STO tokenomics

Roadmap

It is a scheme with the descriptions and dates of the main events of the STO project, which were in the past and are planned in the future. For example: the creation of a company (date), the receipt of licenses (date), the STO conduction (date), token generation event (date), MVP release (date), the release of the main product (approximate date, like Q3.2020). If the roadmap is too short, it may be suspected that you just want to raise money and not think about global perspectives. If the main product is far away, investors may prefer to buy tokens not during the STO but from the market later.

https://primei.co/wp-content/uploads/2018/09/nex-roadmap.jpg

STO roadmap sample

Team Members and Advisory

Show the main members of the team and provide the information about where they worked before and at what positions. Ideally, provide the LinkedIn links, so that investors do not have to goggle team members.

Platinum experts are sure that it is important to have appropriate experts from the project’s industry field, as well as experienced blockchain developers.

Advisors must be respected in the investment community. If there is a person among the advisers who is related to questionable or unsuccessful companies, this could undermine the attitude to your project.

Conclusions

Writing white paper is best to entrust professionals with extensive experience. And give your white paper before publishing to several potential investors in order to get a critical feedback from the outside and to finalize the document.

Thank you for reading this article! My name is Inna Halahuz and I am a project manager in one of the most successful companies on the crypto market.

Feel free to contact me to know more about Platinum:

https://www.facebook.com/vladimir.hovanskiy.7

Would you like to know how to make your token a superstar? How can we help you to successfully launch your project? What is the fastest way to raise funds? Contact Anton Dzyatkovskiy, co-founder of Platinum, to know more about Platinum and the UBAI services:

SKYPE: AntonD.Merlion
LINE: Anton.Dziatkovskii
WECHAT: antondz 
TELEGRAM: @antondz 
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@: [email protected] 
WHATSAPP: +79685331499 
http://linkedin.com/in/anton-dziatkovskii-47012a95

Contact Platinum team to get all the details:

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https://twitter.com/FundPlatinum

https://t.me/platinumfund

https://www.linkedin.com/company/platinum-co/

More about the offers:

Free consultation on STO:

https://platinum.fund/sto/

More on Platinum market making:

https://platinum.fund/marketmaking

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https://platinum.fund/listing/


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Vladimir Hovanskiy, a Google Adwords manager at Platinum on how to write white paper for STO
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