CryptoCube Weekly

Greetings CryptoCubers 

BTC - $63 639 

Eth - $3122

Sol- $146 

That dip didn't last very long, as we see some great news for bitcoin in general as Hong Kong approves spot ETF, bringing a great potential surge in new buyers and large buys for the cryptocurrency. 

A trader sent $68m worth of wrapped BTC in an address poisoning scam which we all thought was over, by sending their wrapped WBTC to the wrong address and having their wallet drained of 97% of their assets, it was truly a tough day for that individual, hopefully, they will be able to retrieve their funds. This reminds us always to be careful when sending crypto even more so when it is in large amounts.  

Enough small talk let's get to the good stuff… 

This week we will be covering whitepapers 

A whitepaper is a document designed by a project to persuade investors, it includes the problem and solution as well as an in-depth report on a specific topic.

This is how most crypto companies promote their new projects, allowing new investors to look at them and decide if they want to invest. It is generally the first step in understanding the project and the problem it is trying to solve. 

The whitepaper provides details and an in-depth analysis of the company generally following the same steps : 

• introduction, 

• what the project is and what problem it is trying to solve 

• Plans and use cases 

• Roadmap 

• Tokenomics 

• Team 

Roadmap describes the journey the company has undertaken to get to where they are and shows where along the plan they are holding it also describes the plans and how they aim to achieve their goals 

The Tokenomics describes the Economics of the Native token of the project proposed allocation of their tokens maximum supply and how they will distribute the tokens upon launch, as well as the type of consensus they decide to use such as, 

• proof of work (PoW)   

• proof of stake (PoS) 

• Delegated proof of stake (DPos)

• Proof of Importance ( PoI)

• Proof of Capacity (PoC) 

• Proof of Elapsed time (PoeT)

• Hybrid proof of Activity (PoA)

• Proof of Authority (PoA)

• Proof of Burn (PoB)

• Byzantine Fault tolerance (BFT) 

Don't worry we will cover all these terms in our upcoming newsletter just to familiarize yourselves with these blockchain terms as a head start in the game. 

In short several factors determine a good white paper from a bad one

A good whitepaper will have a lot of detail and many technical terms and will often clarify all the areas of the project as well as reveal all the team members. It will be designed correctly and have an accurate report with an easy-to-navigate table of contents.

Some whitepapers have a more marketing-based approach while others will have a more technical approach generally when a white paper is fancy and looks good it has taken a marketing approach and when it has many technical terms and a very basic layout it is the technical approach. A good white paper helps bring confidence to the project and allows investors to investigate before making a financial decision. 

A Bad white paper is the opposite, it will be unclear, might be way too long to read, and have confusing terms without clarity and concise language as well as not revealing the core team members and inaccurate tokenomics or roadmap. 

You can check whitepapers on Git Hub or coinmarketcap and have a read for yourself check out some roadmaps and become familiar with the different styles used. 

If a project does not have a whitepaper well then it speaks for itself, and one should proceed with caution before investing. 

This is one of our favorite aspects of the Crypto world where it encourages users to research for themselves and make independent decisions on projects they want to invest in. 

Remember DYOR! (Do Your Own Research). 

That's a wrap for this week we hope you enjoyed it!  

Safe Investing 

Blessings 

Cry