MLS by Oladipo Opanubi has just concluded developing a whitepaper for an ICO. You might question what a white paper is and also an ICO. Lets kick off with the ICO. As explained in yesterdays article an ICO is an Initial Coin Offering very similar to an IPO. For more on that please see yesterdays article. A white paper is a precursor to an ICO and is used in the same way a prospectus is used in a traditional IPO. According to https://cointelegraph.com/ a white paper is: ” … a document which includes an outline of a problem that the project is looking to solve, the solution to that problem as well as a detailed description of their product, its architecture and its interaction with users.” Potential subscribers to the ICO are greeted with a white paper and the success of an ICO is largely determined by the drafting of the white paper.
You can pretty much guess what needs to occur ahead of the white paper being drafted. A comprehensive due diligence of course. The success of pin pointing what a subscriber requires to see to make an informed decision on if to subscribe to the ICO depends upon if the data in the white paper is verifiable? Hence its important that the due diligence be a deep dive due diligence. At MLS we would do our own AI based due diligence ahead of developing the white paper and thereafter use same process to create an exchange in a sell-side structured VDR (virtual data room) for the subscriber to do their own due diligence. So we have two due diligence exercises, the first for developing the white paper and the second for the subscriber to the ICO. Everything in the exchange of the whitepaper must align with what is in the VDR otherwise it begins to raise doubts about the opportunity in question.
Another part of the due diligence process that is critical is KYC on subscribers.
… the pseudo-anonymous nature of token offerings (ie ICOs) makes it technically impossible to determine a subscribers real identity. The only transparent feature known about the investors is their wallet address, i.e., the combination of numbers and letters that subscribers use to send and receive tokens. Although token transfers can be reconstructed using the information stored on blockchains, they never reveal the true identity. Hence, the term “pseudo-anonymous.” - https://cointelegraph.com/
Verification of investor identities via KYC (know your customer) or whitelist registrations builds confidence in the eco-system of coin offerings. Potential investors provide personal data (e.g., photo IDs and email addresses), undergo approval processes, and explain their intention to buy the token in question in a short.
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MLS (Managed Legal Services) by Oladipo Opanubi specialises in Due Diligence for M&A and Financing transactions. We utilise technology such as VDRs, AI, and Deep Dive analytics to get the job done. Though we emerged from a Law Firm most of our resources are technologists supported by subject matter experts.