Initial Coin Offerings Hyped and Dehyped: An Empirical Examination

46 Pages Posted: 14 Nov 2018 Last revised: 23 Mar 2019

See all articles by Robert F. Dittmar

Robert F. Dittmar

University of Michigan, Stephen M. Ross School of Business

Di (Andrew) Wu

University of Michigan, Stephen M. Ross School of Business

Date Written: March 15, 2019

Abstract

We conduct a systematic examination of the returns to initial coin offerings (ICOs) throughout the hype cycle using hand-compiled data on all trading ICOs from 2014 to 2019. We demonstrate that ICOs persistently outperform non-ICO cryptocurrencies during both the market boom and crash. We then uncover significant return determinants in the cross section along both informational and behavioral dimensions, and document significant differences in their return association in the post-hype period from late 2018 onward. Our results position ICOs as a unique asset class with features from both reward-based crowdfunding and equities, and the crowdfunding features become more dominant post-hype.

Keywords: initial coin offering, cryotocurrency, blockchain, fintech

Suggested Citation

Dittmar, Robert F. and Wu, Di, Initial Coin Offerings Hyped and Dehyped: An Empirical Examination (March 15, 2019). Available at SSRN: https://ssrn.com/abstract=3259182 or http://dx.doi.org/10.2139/ssrn.3259182

Robert F. Dittmar

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Di Wu (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
155
rank
185,948
Abstract Views
516
PlumX Metrics