Effects of Initial Coin Offering Characteristics on Cross-listing Returns

Meyer, A., Ante, L. Effects of initial coin offering characteristics on cross-listing returns. Digit Finance (2020). https://doi.org/10.1007/s42521-020-00025-z

22 Pages Posted: 14 Apr 2020 Last revised: 15 Sep 2020

See all articles by André Meyer

André Meyer

Blockchain Research Lab

Lennart Ante

Blockchain Research Lab

Date Written: March 19, 2020

Abstract

The lack of transparency in cryptocurrency markets means that investors must assess a project’s quality on the basis of public information. This paper examines how initial coin offering (ICO) characteristics affect cross-listing returns, i.e. whether or not the available information is a valuable signal of quality. For this purpose, we analyze 250 cross-listings of 135 different tokens issued via ICOs and calculate abnormal returns for specific samples using event study methodology. We find that cross-listing returns are driven by success in terms of token performance and project funding, as well as by jurisdiction-specific characteristics like the extent of regulation and domestic market size. Other characteristics like the choice or change of blockchain infrastructure, token distribution across investors and the project team, campaign duration and whitepaper characteristics also seem to influence perceived project quality and thus cross-listing returns. The results provide insights for the literature on cross-listings, cryptocurrency markets and entrepreneurial finance in the form of ICOs. They also make it possible to interpret the information available on the market and enable investors, project teams and crypto currency exchanges to evaluate probable market reactions to cross-listings.

Keywords: ICO characteristics; Cryptocurrency exchanges; Blockchain; Ethereum; Event study; Token sales

JEL Classification: G14; M13

Suggested Citation

Meyer, André and Ante, Lennart, Effects of Initial Coin Offering Characteristics on Cross-listing Returns (March 19, 2020). Meyer, A., Ante, L. Effects of initial coin offering characteristics on cross-listing returns. Digit Finance (2020). https://doi.org/10.1007/s42521-020-00025-z, Available at SSRN: https://ssrn.com/abstract=3557733 or http://dx.doi.org/10.2139/ssrn.3557733

André Meyer (Contact Author)

Blockchain Research Lab ( email )

Colonnaden 72
Hamburg, 22303
Germany

HOME PAGE: http://www.blockchainresearchlab.org/en/home/

Lennart Ante

Blockchain Research Lab ( email )

Colonnaden 72
Hamburg, 22303
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
80
Abstract Views
381
rank
378,349
PlumX Metrics