Token Offerings: A Revolution in Corporate Finance?

20 Pages Posted: 27 Mar 2019

See all articles by Paul P. Momtaz

Paul P. Momtaz

Technische Universität München (TUM) - TUM School of Management; University College London Center for Blockchain Technologies; CESifo (Center for Economic Studies and Ifo Institute)

Kathrin Rennertseder

University of Hamburg

Henning Schröder

Leuphana University Lüneburg; Hamburg Financial Research Center

Date Written: March 5, 2019

Abstract

Token offerings or initial coin offerings (ICOs) are smart contracts based on blockchain technology designed to raise external finance without an intermediary. The new technology might herald a revolution in entrepreneurial and corporate finance, with soaring market growth rates over the last two years. This paper surveys the market evolution, offering mechanisms, and token types. Stylized facts on the pricing and long-term performance of ICOs are presented, and practical implications for this young market to thrive are discussed.

Keywords: Initial Coin Offerings, Token Offerings, Token Sales, ICOs, Crowdfunding, Blockchain, Distributed Ledger Technology, Corporate Finance, Entrepreneurial Finance

JEL Classification: G10, G18, G23, G24, G30, K22, L26

Suggested Citation

Momtaz, Paul P. and Rennertseder, Kathrin and Schröder, Henning, Token Offerings: A Revolution in Corporate Finance? (March 5, 2019). Available at SSRN: https://ssrn.com/abstract=3346964 or http://dx.doi.org/10.2139/ssrn.3346964

Paul P. Momtaz

Technische Universität München (TUM) - TUM School of Management ( email )

Arcisstr. 21
Munich, 80333
Germany

University College London Center for Blockchain Technologies ( email )

UCL CBT UCL Computer Science
Malet Place London WC
London, London
United Kingdom

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

Poschinger Str. 5
Munich, DE-81679
Germany

Kathrin Rennertseder (Contact Author)

University of Hamburg ( email )

Moorweidenstrasse 18
Hamburg, 20146
Germany

Henning Schröder

Leuphana University Lüneburg ( email )

Lueneburg
Germany

Hamburg Financial Research Center

Hamburg
Germany

HOME PAGE: http://www.hfrc.org

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