Initial Coin Offerings, Corporate Finance and Financial Regulation
F. Allen 2020, "Initial Coin Offerings, Corporate Finance and Financial Regulation," Digital Currency Economics and Policy Workshop E-book, ABFER.
18 Pages Posted: 14 Sep 2020
Date Written: July 12, 2020
Initial Coin Offerings (ICOs) have grown substantially in recent years. They involve issuing coins that are recorded on a block-chain. These can be used to purchase the service or good that the firm they finance produces. The coins can be exchanged for currency on cryptocurrency exchanges. Although many ICOs are fraudulent, most studies find positive average and median returns. Theoretical analyses suggest they can have several advantages compared to Initial Public Offerings (IPOs). They are regulated in widely differing ways with the UK, Switzerland and Singapore having regimes that make them easier to undertake than other countries.
Keywords: capital raising, cryptocurrencies, financial structure
JEL Classification: G30, G38
Suggested Citation: Suggested Citation