Study of the Performance and Determinants of Initial Coin Offering
DOI:
https://doi.org/10.12775/CJFA.2024.005Parole chiave
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 performanceand the determinants of initial coin offering. We use panel data and multiple regressionmodels 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 December2023, we find that the reputation of the founding team, the quality of the informationmaterials provided to stakeholders, the market liquidity, and regulatory complianceare closely related to ICO Performance. The implications of these findings are indeedsubstantial, as they have far-reaching effects on all participants in the ICO market. Forentrepreneurs, the results highlight that success in ICOs depends not only on innovativeideas but also on effective governance and transparent communication. This underscoresthe importance of factors beyond the core technology or concept in determining the success of ICOs and emphasizes the need for comprehensive strategies thatencompass governance and communication practices.
Riferimenti bibliografici
Adhami, S., Giudici, G., & Martinazzi, S. (2018). Why do businesses go crypto? An empirical analysis of initial coin offerings. Journal of Economics and Business, 100, 64-75. https://doi.org/10.1016/j.jeconbus.2018.04.001.
An, J., Duan, T., Hou, W., & Xu, W. (2019). Initial coin offerings and entrepreneurial finance: The role of founders. Journal of Alternative Investments, 21(4), 26-40. https://doi.org/10.3905/jai.2019.1.068.
Andrés, P., Arroyo, D., Correia, R., & Rezola, A. (2022). Challenges of the market for initial coin offerings. International Review of Financial Analysis, 79, 101966. https://doi.org/10.1016/j.irfa.2021.101966.
Aslan, A., Şensoy, A., & Akdeniz, L. (2023). Determinants of ICO success and post-ICO performance. Borsa Istanbul Review, 23(1), 217-239. https://doi.org/10.1016/j.bir.2022.10.005.
Bai, Y., & Zhang, B. (2024). Fundamental analysis of Initial Coin Offerings. International Journal of Finance & Economics. https://doi.org/10.1002/ijfe.2948.
Florysiak, D., & Schandlbauer, A. (2022). The Information Content of ICO White Papers. SSRN, Electronic Journal. https://doi.org/10.2139/ssrn.3265007.
Fu, C., Koh, A., & Griffin, P. (2019). Automated theme search in ICO whitepapers. Journal of Finance and Data Science, 1(4), 140-158. https://doi.org/10.3905/jfds.2019.1.011.
Kuppuswamy, V., & Bayus, B.L. (2018). Crowdfunding Creative Ideas: The Dynamics of Project Backers. In: Cumming, D., Hornuf, L. (Eds.). The Economics of Crowdfunding. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-66119-3_8.
Lyandres, E., Palazzo, B., & Rabetti, D. (2022). Initial Coin Offering (ICO) Success and Post-ICO Performance. Management Science, 68(12). https://doi.org/10.1287/mnsc.2022.4312.
Momtaz, P.P. (2019). Token sales and initial coin offerings: introduction. The Journal of Alternative Investments, 21, 7– 12, https://doi.org/10.3905/jai.2019.21.4.007.
Momtaz, P.P. (2020). Initial coin offerings, asymmetric information, and loyal CEOs. Small Business Economics, 57(2), 975-997. https://doi.org/10.1007/s11187-020-00335-x.
Wang, Y., Fisch, C., & Momtaz, P.P. (2020). Does soft information in expert ratings curb information asymmetry? Evidence from crowdfunding and early transaction phases of Initial Coin offerings. Journal of Business Finance & Accounting, 47(1-2), 226-254. https://doi.org/10.1111/jbfa.12428.
Wats, S., Joshi, M., & Singh, S., (2024), Initial coin offerings: current trends and future research directions. Quality & Quantity, 58, 1361–1387. https://doi.org/10.1007/s11135-023-01701-z.
Wisniewska, A. (2018). The Initial Coin Offering – Challenges and Opportunities. Copernican Journal of Finance & Accounting, 7(2), 99-110. https://doi.org/10.12775/CJFA.2018.011.
Zhang, A.R., Raveenthiran, A., Mukai., J., Naeem, R., Dhuna, A., Parveen, Z., & Kim, H. (2019). The regulation paradox of initial coin offerings: A case study approach. Frontiers in Blockchain, 2. https://doi.org/10.3389/fbloc.2019.00002.
Downloads
Pubblicato
Come citare
Fascicolo
Sezione
Licenza
Questo lavoro è fornito con la licenza Creative Commons Attribuzione - Non opere derivate 4.0 Internazionale.
Stats
Number of views and downloads: 32
Number of citations: 0
