What Determines Initial Coin Offering Success: A Cross-Country Study
IÉSEG Working Paper Series 2020-ACF-10
33 Pages Posted: 3 Dec 2020
Date Written: November 23, 2020
We investigate the determinants of ICO campaigns' presence and success using data on 503 initial coin offerings (ICOs) from 60 countries that took place between 2015 and 2018. We took individual project perspective and country-wide perspective into account. Our findings show that expert ratings, insider retention, and resource-related signals, such as the number of team members and advisors, contribute positively to ICO funding success and post-ICO activity. Conversely, organizing presale and bonuses contribute negatively. Moreover, we established that countries' financial system development and ICO-related legal certainty boost the crypto-market. More importantly, we also document that countries' cultures foster ICO market development.
Keywords: Initial Coin Offering, corporate finance, innovation, entrepreneurship
JEL Classification: G10, L26, M13, O30
Suggested Citation: Suggested Citation