#5: Read a Coin’s White Paper, But Don’t Take It Too Seriously
It’s always a good idea to give that “white paper” a read, even if a lot of them end up being half a crock. The “white paper” is supposed to be the bedrock of credibility upon which a Web3 platform rests. It’s the business plan and the vision behind the company and its coin—and it usually espouses the “revolutionary” technology being used to make all that happen. Yet an investigation by Decrypt not long ago showed that a lot of white papers are written by contractors with “limited technical knowledge” of the concepts they’re writing about—and many contractors are called upon to “fabricate and exaggerate facts,” according to the review. Still, maybe worth a read. If a company can’t even hire people to write or proofread their big claims, that might be a red flag of a larger scam at work.
