Whitepapers provide crucial insights into a project's purpose, roadmap, and tokenomics, helping investors make informed decisions. They establish credibility by detailing the underlying technology, governance models, and use cases. A well-structured whitepaper enhances transparency and attracts long-term stakeholders. Whitepapers also define security measures and regulatory compliance aspects. Understanding whitepapers helps users assess potential risks and project viability. Always read a project's whitepaper before investing.