Alternative Fundraising: Success Factors for Blockchain-Based vs. Conventional Crowdfunding

Hartmann, Felix; Grottolo, Gloria; Wang, Xiaofeng; Lunesu, Maria Ilaria

doi:10.1109/iwbose.2019.8666515

Cited by 45 publications

(21 citation statements)

References 33 publications

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“…Financial institutions' role as third parties is being challenged by new models such as ICOs (Campino, Brochado, & Rosa, 2020). Furthermore, the industry in which the project is developed in uences its outcome (Hartmann, Grottolo, Wang, & Lunesu, 2019) since some industries have tendentially less successful projects (Davies & Giovannetti, 2018). We would like to avoid the risk of a biased result given the speci cities of our research focused on the human capital.…”

Section: Database and Variablesmentioning

confidence: 99%

Initial Coin Offerings (ICOs): the importance of human capital

2021

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The Initial Coin Offerings (ICOs) subject has been gaining relevance due to its novelty, due to the capital amounts involved in the projects, as well as the disruptive technology and methods involved. ICOs are a disruptive way to nance new projects which involve high risks and which are mainly technological. This way to nance a project has been compared to others, namely, crowdfunding, venture capital or Initial Public Offerings (IPOs). Nevertheless, ICOs have very speci c characteristics which make them unique. We have studied the ICO projects and developed a literature review on the topic. Building on the Human Capital Theory (HCT), we have also studied the importance given to the project's team and its perceived impact on projects' success. Our contribution to ll in this literature gap was to develop an econometric model which measures the impact of team's characteristics on the success of a project. The database was collected with the combination of two data sources and is composed of 3158 pro les and 340 ICO projects. We have concluded that team variables are signi cant contributors to project's success. Our data suggests that people's location contributes to projects' success as well as promoters' networks. The ratings attributed by external parties to the project are also indicators of success. Several control variables such as the implementation of thresholds to investment, the number of currencies accepted, the platform in which the ICO is developed, the existence of bonus schemes and the year of the project were found to be statistically signi cant having an impact on projects' outcome.

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Section: Database and Variablesmentioning

confidence: 99%

Initial Coin Offerings (ICOs): the importance of human capital

2021

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Section: Database and Variablesmentioning

confidence: 99%

Initial Coin Offerings (ICOs): the importance of human capital

Campino

Brochado

Rosa

2021

Preprint

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The Initial Coin Offerings (ICOs) subject has been gaining relevance due to its novelty, due to the capital amounts involved in the projects, as well as the disruptive technology and methods involved. ICOs are a disruptive way to finance new projects which involve high risks and which are mainly technological. This way to finance a project has been compared to others, namely, crowdfunding, venture capital or Initial Public Offerings (IPOs). Nevertheless, ICOs have very specific characteristics which make them unique. We have studied the ICO projects and developed a literature review on the topic. Building on the Human Capital Theory (HCT), we have also studied the importance given to the project’s team and its perceived impact on projects’ success. Our contribution to fill in this literature gap was to develop an econometric model which measures the impact of team’s characteristics on the success of a project. The database was collected with the combination of two data sources and is composed of 3158 profiles and 340 ICO projects. We have concluded that team variables are significant contributors to project’s success. Our data suggests that people’s location contributes to projects’ success as well as promoters’ networks. The ratings attributed by external parties to the project are also indicators of success. Several control variables such as the implementation of thresholds to investment, the number of currencies accepted, the platform in which the ICO is developed, the existence of bonus schemes and the year of the project were found to be statistically significant having an impact on projects’ outcome.

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“…Several papers have argued that blockchain has the potential to bring significant innovation to the crowdfunding sector and enhance financial inclusion (Zhu and Zhou 2016;Muneeza, Arshad, and Arifin 2018). Blockchain technology provides a distributed, tamper-proof, and encrypted system that can disrupt the traditional model of crowdfunding (Hartmann et al 2019). For example, it could be possible to back renewable energy assets as cryptocurrencies.…”

Section: Blockchain Applications In Financial Marketsmentioning

confidence: 99%

“…There are three types of blockchain-based crowdfunding models: utility token, payment token, and investment token (Howell, Niessner, and Yermack 2018). Utility tokens are the inherent carriers of value on the platform, protocol, or network that network participants need to hold to engage or access the products or services that the platform, protocol, or network provides (Hartmann et al 2019). Utility token sales are similar to traditional reward-based crowdfunding models.…”

Section: Blockchain Applications In Financial Marketsmentioning

confidence: 99%

Scaling Up Sustainable Investment through Blockchain-Based Project Bonds

Chen

Volz

2021

SSRN Journal

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The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.

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Alternative Fundraising: Success Factors for Blockchain-Based vs. Conventional Crowdfunding

Cited by 45 publications

References 33 publications

Initial Coin Offerings (ICOs): the importance of human capital

Initial Coin Offerings (ICOs): the importance of human capital

Initial Coin Offerings (ICOs): the importance of human capital

Scaling Up Sustainable Investment through Blockchain-Based Project Bonds

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