Do Tokens Behave like Securities? An Anatomy of Initial Coin Offerings

60 Pages Posted: 12 Dec 2018 Last revised: 11 May 2019

See all articles by Evgeny Lyandres

Evgeny Lyandres

Boston University

Berardino Palazzo

Federal Reserve Board

Daniel Rabetti

Tel Aviv University

Date Written: April 20, 2019

Abstract

We construct a comprehensive dataset of initial coin offerings (ICOs) to study the determinants of ICO success, post-ICO returns, volatility and liquidity, and evolution of ICO-backed-ventures’ social media activity and productivity. Most of our results for ICOs are consistent with empirical regularities typical of public equity IPOs. The results hold within a subset of data with the highest quality, according to a data quality measure that we develop. Our findings contribute to the debate about whether tokens issued in an ICO should be considered securities by showing that they tend to behave similarly to equities.

Keywords: ICOs, IPOs, regulation

Suggested Citation

Lyandres, Evgeny and Palazzo, Berardino and Rabetti, Daniel, Do Tokens Behave like Securities? An Anatomy of Initial Coin Offerings (April 20, 2019). Available at SSRN: https://ssrn.com/abstract=3287583 or http://dx.doi.org/10.2139/ssrn.3287583

Evgeny Lyandres (Contact Author)

Boston University ( email )

595 Commonwealth Avenue
Boston, MA 02215
United States
617-3582279 (Phone)

Berardino Palazzo

Federal Reserve Board ( email )

1801 K street NW
Washington, DC 20036
United States

Daniel Rabetti

Tel Aviv University ( email )

Ramat Aviv
Tel-Aviv, 6997801
Israel
972-54-9107234 (Phone)

HOME PAGE: http://https://en-coller.tau.ac.il/

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