Study of the Performance and Determinants of Initial Coin Offering
DOI:
https://doi.org/10.12775/CJFA.2024.005Keywords
determinants of ICO, performance, reputation of the founding team, quality of the information, market liquidity, regulatory complianceAbstract
The aim of the paper is to study the relationship between the performance and the determinants of initial coin offering. We use panel data and multiple regression models to measure the impact of the determinants of the initial coin offering on its performance. Based on a sample of 3,498 ICOs issued between January 2019 and December 2023, we find that the reputation of the founding team, the quality of the information materials provided to stakeholders, the market liquidity, and regulatory compliance are closely related to ICO Performance. The implications of these findings are indeed substantial, as they have far-reaching effects on all participants in the ICO market. For entrepreneurs, the results highlight that success in ICOs depends not only on innovative ideas but also on effective governance and transparent communication. This underscores the importance of factors beyond the core technology or concept in determining the success of ICOs and emphasizes the need for comprehensive strategies that encompass governance and communication practices.
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