The Market Cycles of ICOs, Bitcoin, and Ether

17 Pages Posted: 2 Jul 2018 Last revised: 20 Jul 2018

See all articles by Christian Masiak

Christian Masiak

University of Trier - Faculty of Management

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Tobias Masiak

Saarland University

Matthias Neuenkirch

University of Trier - Faculty of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Katja Pielen

University of Trier - Department of Psychology

Date Written: June 19, 2018

Abstract

We apply time series analysis to investigate the market cycles of Initial Coin Offerings (ICOs) as well as bitcoin and Ether. Our results show that shocks to ICO volumes are persistent and that shocks in bitcoin and Ether prices have a substantial and positive effect on these volumes – with the effect of bitcoin shocks being of shorter duration than that of Ether shocks. Moreover, higher ICO volumes cause lower bitcoin and Ether prices. Finally, bitcoin shocks positively influence Ether but not the other way round. Our study has implications for financial practice, in particular for cryptocurrency investors and entrepreneurial firms conducting ICOs.

Keywords: Bitcoin, Blockchain, Cryptocurrency, Entrepreneurial Finance, Ether, Initial Coin Offering, ICO, Time Series Analysis

JEL Classification: G11, E22, O16

Suggested Citation

Masiak, Christian and Block, Jorn Hendrich and Masiak, Tobias and Neuenkirch, Matthias and Pielen, Katja, The Market Cycles of ICOs, Bitcoin, and Ether (June 19, 2018). Available at SSRN: https://ssrn.com/abstract=3198694 or http://dx.doi.org/10.2139/ssrn.3198694

Christian Masiak (Contact Author)

University of Trier - Faculty of Management ( email )

Universitätring 15
Trier, DE 54296
Germany
0049 651 2014489 (Phone)

Jorn Hendrich Block

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Tobias Masiak

Saarland University ( email )

Stadtwald
Saarbrucken, Saarland D-66123
Germany

Matthias Neuenkirch

University of Trier - Faculty of Economics ( email )

Universitätsring 15
Trier, 54296
Germany
+49 - (0)651 - 201 - 2629 (Phone)

HOME PAGE: http://www.uni-trier.de/index.php?id=50130

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Katja Pielen

University of Trier - Department of Psychology ( email )

15, Universitaetsring
Trier, 54286
Germany

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