Predictability of Ico Success and Returns

The University of Auckland Business School Research Paper Series, 2020

Journal of Applied Business and Economics, 22(13), 20-36. https://www.arx.cfa/en/research/2020/01/soc060120-predictability-of-ico-success-and-returns

Posted: 28 Feb 2022

See all articles by Tobias Dean

Tobias Dean

Independent

Dulani Jayasuriya

University of Auckland Business School

Alastair Marsden

University of Auckland Business School

Date Written: 2020

Abstract

Initial coin offerings (ICOs) provide a platform of tokens to the public as a way of crowdfunding, primarily to start-ups in cryptocurrencies. This empirical study is one of the first to analyse the determinants of ICO success and post-ICO returns which in recent years allowed start-ups to raise several billion US dollars.

A unique dataset of 432 executed ICOs was compiled from online platforms and other publicly available data sources.

ICOs have the potential to deliver a quick return, or alternatively can turn into an unrecoverable loss entailing high risks. This study identifies factors such as investor sentiment, time horizons and correlations with other asset markets that can provide predictability to both the post-ICO returns and the success of the ICO.

Overall, this study provides unique and new insights into this novel entrepreneurial practice, perceived by regulators as the 'wild west' of fundraising and an ever-increasing source of capital for new technology start-ups.

Suggested Citation

Dean, Tobias and Jayasuriya, Dulani and Marsden, Alastair D.E., Predictability of Ico Success and Returns (2020). The University of Auckland Business School Research Paper Series, 2020, Journal of Applied Business and Economics, 22(13), 20-36. https://www.arx.cfa/en/research/2020/01/soc060120-predictability-of-ico-success-and-returns, Available at SSRN: https://ssrn.com/abstract=4036074

Dulani Jayasuriya

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Alastair D.E. Marsden

University of Auckland Business School ( email )

Private Bag 92019
Room: C208
Auckland
New Zealand
64 9 373 7999 (Phone)
64 9 373 7406 (Fax)

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

Paper statistics

Abstract Views
166
PlumX Metrics