JAKARTA - The latest data from CoFTRA shows that the number of crypto investors in Indonesia until the first quarter of 2023 has reached 17.14 million people, of which in 2020 only 4 million investors were recorded.
Seeing this rapid development, Indodax CEO Oscar Darmawan advised novice investors to start by studying fundamental crypto analysis, one of which is by studying crypto whitepapers.
"Whitepaper in crypto is a detailed explanation of the crypto token or coin project. Where the whitepaper usually contains the name of the team involved in making the crypto, the roadmap to be run, the technology used, as well as problems and solutions," Oscar said in a written statement, quoted Monday, June 5.
"Not to forget, sometimes we can see what the utility from the crypto is for. Not only crypto, some whitepapers are also on DEFI projects and P2E games," he added.
In addition, Oscar also suggested that investors pay attention to the most important points in reading whitepapers, namely the written date of the document and also who wrote it.
"Another thing that needs to be considered is the abstract part where it is a summary of the purpose of creating the crypto project to provide solutions to solving existing problems," explained the CEO of Indodax.
In whitepaper, investors can also find out the people behind the crypto project and do the background check education and experience they have. However, this certainly does not apply if the token maker decides to be anonymous.
"With the advancement of technology, it is very likely that these crypto developers will change the network or some plans they want to do. This is common considering that with blockchain technology, changes in the kind of network hard fork will always exist. Investors also need to see who the author of the whitepaper is. Usually the one who writes is one of the important people in the project. For example, in the Solana crypto project, Anatoly Yakovenko as the Co-Founder of Solana who wrote the crypto whitepaper," explained Oscar.
To see the whitepaper of a cryptocurrency, investors can visit the official website of the crypto token or coin. For example, if investors want to know more about Solana, they can visit solana.com
In addition, investors can also access the whitepaper of a crypto project via CoinMarketCap. So, when investors click on the whitepaper link of one of the crypto projects, it will be directly directed to the official website of the crypto project whitepaper.
"Crypto whitepapers can also be read before the official crypto project is launched so that investors can read first," Oscar added.
It should be noted that according to Oscar, the whitepaper function does not only apply to investors, but is also an important factor for the developer of a crypto project itself. With the whitepaper, the developer can create more systematic and structured design for its artificial project and doesn't seem random. A crypto project can also be considered more legitimate.