FOMO in Digital Assets
19 Pages Posted: 29 Mar 2021 Last revised: 10 Jun 2022
Date Written: June 10, 2022
This study examines the Fear of Missing Out (FOMO) sentiment as a motivation for retail investors to own ICOs. In the extant literature, this sentiment is suggested to be a possible factor explaining ICO investing. This study examines this empirically. Using novel OECD survey data on ICO investing in Malaysia, the Philippines and Vietnam, this study finds that FOMO is a motivational driver in ICO ownership. When FOMO is interacted with wealth, their explanatory effect of ICO ownership is high at 25%. Furthermore, the study also finds that ICO investors are also motivated by long-term investing.
Keywords: Initial Coin Offerings, Corporate Finance, Blockchain, Sentiment
JEL Classification: D18, D47, G11, O16, G41
Suggested Citation: Suggested Citation