Why Do Businesses Go Crypto? An Empirical Analysis of Initial Coin Offerings
Author | : Saman Adhami |
Publisher | : |
Total Pages | : 36 |
Release | : 2018 |
ISBN-10 | : OCLC:1304452724 |
ISBN-13 | : |
Rating | : 4/5 (24 Downloads) |
Book excerpt: In this work, we provide the first comprehensive description of the Initial Coin Offering (ICO) phenomenon, which by the end of 2017 allowed startups around the world to raise more than $5.3 billion, according to market observers. We analyze the determinants of the success of these token offerings by considering a sample of 253 campaigns. We find that the probability of an ICO's success is higher if the code source is available when a token presale is organized, and when tokens allow contributors to access a specific service (or to share profits). Our results provide valuable insights into this new source of capital for businesses and the key determinants of fundraising success.