What Determines Initial Coin Offering Success: A Cross-Country Study

IÉSEG Working Paper Series 2020-ACF-10

33 Pages Posted: 3 Dec 2020

See all articles by Muhammad Farooq Ahmad

Muhammad Farooq Ahmad

SKEMA Business School – Université Côte d'Azur

Oskar Kowalewski

IESEG School of Management; LEM - CNRS 9221

Paweł Pisany

Polish Academy of Science

Date Written: November 23, 2020

Abstract

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

Ahmad, Muhammad Farooq and Kowalewski, Oskar and Pisany, Paweł, What Determines Initial Coin Offering Success: A Cross-Country Study (November 23, 2020). IÉSEG Working Paper Series 2020-ACF-10, Available at SSRN: https://ssrn.com/abstract=3735889 or http://dx.doi.org/10.2139/ssrn.3735889

Muhammad Farooq Ahmad

SKEMA Business School – Université Côte d'Azur ( email )

Campus de Lille, Avenue Willy Brandt,
Lille, 59777
France

HOME PAGE: http://sites.google.com/site/mfarooqahmad85

Oskar Kowalewski (Contact Author)

IESEG School of Management ( email )

1 Parvis de La Défense
Socle de la Grande Arche
Paris La Défense cedex, 92044
France

HOME PAGE: http://www.ieseg.fr/en/faculty-and-research/professor/?id=1740

LEM - CNRS 9221 ( email )

Lille
France

HOME PAGE: http://lem.cnrs.fr/

Paweł Pisany

Polish Academy of Science ( email )

3 Maja str. 2 m 164
Warsaw, 00-391
Poland

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

Paper statistics

Downloads
158
Abstract Views
402
rank
231,688
PlumX Metrics