What Is the Significance of the "Use of Funds" Section in an ICO Whitepaper? ▴ Learn

What Is the Significance of the “Use of Funds” Section in an ICO Whitepaper?

This section details how the capital raised from the ICO will be allocated (e.g. development, marketing, legal). It is a critical indicator of the team's planning and financial prudence.

Investors should look for a reasonable allocation favoring development and security over excessive marketing or team salaries. Lack of detail is a major red flag for potential fund mismanagement.

What Is the Significance of Community-Driven Development in the Context of a New Financial Derivative?

How Can a Team’s Prior Involvement in Failed Projects Be Evaluated as a Red Flag?

What Is the Significance of the ‘Transaction Value’ Metric versus the ‘Transaction Count’ Metric?

What Is the Role of a Whitepaper in an ICO?