Dynamics of Voluntary Disclosure in the Unregulated Market for Initial Coin Offerings

Blaseg, Daniel

doi:10.2139/ssrn.3207641

Cited by 52 publications

(51 citation statements)

References 72 publications

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“…ICOs are a fundraising mechanism in which a new token is sold to investors and prospective returns, see Benedetti and Kostovetsky (2018), Chanson et al (2018), Dittmar and Wu (2018), Drobetz et al (2018), Hu et al (2018), Lu (2018), Momtaz (2018a), Stastny (2018), Yuryev (2018), and Stanley (2019). On the amount raised, including failure to meet a set target, see Adhami et al (2018), , Ante et al (2018), Blaseg (2018), Burns and Moro (2018), Davydiuk et al (2018), Feng et al (2018), Fenu et al (2018), Fisch (2018), , Momtaz (2018b), Momtaz (2018c), Rhue (2018b), Albrecht et al (2019), Ante and Fiedler (2019), Cai and Gomaa (2019), Cerchiello et al (2019), Chen (2019), Johnson and Yi (2019), Masiak et al (2019), Philippi et al (2019), and Wu et al (2019). On liquidity see Bourveau et al (2018), Lyandres et al (2018), and Fisch and Momtaz (2019).…”

Section: The Ico Marketmentioning

confidence: 99%

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Howell

Niessner

Yermack

2019

The Review of Financial Studies

404

224

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Initial coin offerings (ICOs) have emerged as a new mechanism for entrepreneurial finance, with parallels to initial public offerings, venture capital, and presale crowdfunding. In a sample of more than 1,500 ICOs that collectively raise ${\$}$12.9 billion, we examine which issuer and ICO characteristics predict successful real outcomes (increasing issuer employment and avoiding enterprise failure). Success is associated with disclosure, credible commitment to the project, and quality signals. An instrumental variables analysis finds that ICO token exchange listing causes higher future employment, indicating that access to token liquidity has important real consequences for the enterprise.

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Section: The Ico Marketmentioning

confidence: 99%

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Howell

Niessner

Yermack

2019

The Review of Financial Studies

404

224

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“…Using CEO's cumulative tenure on previous jobs as a measure of loyalty, Momtaz (2018a) shows that CEO's loyalty is negatively associated with ICOs underpricing and positively related to firm's long-run success. On disclosure quality, Blaseg (2018) finds that young ventures that disclose higher quality source codes are more likely to list on a public exchange shortly after ICOs. While insightful, this literature has not evaluated founders' characteristics, individually and collectively, in a systematic way.…”

Section: Initial Coin Offerings and Entrepreneurial Finance: The Rolementioning

confidence: 99%

“…Momtaz (2018a, c) examines how CEO's emotion and loyalty shape a successful ICO. Blaseg (2018) investigates whether the disclosure of high-quality source code increases the probability of listing on a public exchange following a token sale. Howell, Niessner, and Yermack (2018) show that the liquidity and trading volume are higher following an ICO when issuers signal high project quality and commitment to the project.…”

Section: Summary Statisticsmentioning

confidence: 99%

Initial Coin Offerings and Entrepreneurial Finance: The Role of Founders’ Characteristics

An¹,

Duan²,

Hou³

et al. 2019

JAI

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“…Adhami et al (2018) collected very basic data on a sample of ICOs which mostly ran in 2017. Fisch (2019), Amsden and Schweizer (2018), Blaseg (2018) and Cerchiello et al (2019) use more recent samples and attempt to identify the success factors behind ICOs by looking at the funds raised and token listing status. Adhami and Giudici (2019) study the effect of the governance signals of ICO-backed projects such as token rights, institutional setting and team quality.…”

Section: Literature Reviewmentioning

confidence: 99%

Serial and large investors in initial coin offerings

Boreiko

Risteski

2020

Small Bus Econ

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This study is the first to provide systematic evidence regarding investor behaviour in initial coin offerings (ICOs), their investment patterns and their role in the success of campaigns. Using hand-collected data on 472 public token sales over the period of 2013-2017, we advance the ICO literature by demonstrating that some contributors often invest in more than one campaign, and such serial investors contribute earlier. However, they are not more informed and fail to pick betterquality ICOs. Only large serial investors invest more in campaigns that raise more funds, attract more contributors, are more likely to reach their hard caps, and distribute tokens that are listed on crypto exchange. Our findings raise the question of whether regulatory or industry self-regulation agreements on information provision measures are needed to protect smaller retail ICO investors that exhibit naïve reinforcement learning behaviour.

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Dynamics of Voluntary Disclosure in the Unregulated Market for Initial Coin Offerings

Cited by 52 publications

References 72 publications

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Initial Coin Offerings and Entrepreneurial Finance: The Role of Founders’ Characteristics

Serial and large investors in initial coin offerings

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