In Cryptocurrency, What Is a ‘Whitepaper’ and Why Is It Crucial for Investor Due Diligence?

A Whitepaper is a comprehensive document released by an ICO or crypto project that outlines its vision, technology, tokenomics, roadmap, and team. It serves as the primary source of information for prospective investors to understand the project's utility and feasibility.

Crucially, it allows investors to assess the technical depth and economic model, helping to identify potential red flags like vague claims or unrealistic promises. A well-written whitepaper is a hallmark of transparency and seriousness.