The Initial Coin Offering – Challenges and Opportunities

Wiśniewska, Anna

doi:10.12775/cjfa.2018.011

Cited by 8 publications

(3 citation statements)

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“…Prior literature has categorized exchangeable tokens into several groups: currency tokens, utility tokens, securities tokens, asset tokens, equity tokens, reward tokens, and dividend tokens (Wiśniewska, 2018). The currency token holders can make payments directly using such tokens.…”

Section: Theoretical Background and Literature Reviewmentioning

confidence: 99%

Extracting informational cues between initial coin offering projects and the public

Shin,

Kim,

Hall

et al. 2024

Psychology and Marketing

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An initial coin offering (ICO) seeks to raise initial investments for companies by selling crypto tokens to individuals interested in crowdfunding. As ICOs have gained popularity, a lack of information regarding startup companies' prior financial status and business health has led to information asymmetry between potential investors and ICO projects. This study explores the informational cues necessary to bridge this gap. Employing signaling theory, we elucidate the presence of information asymmetry and conduct two case analyses to identify relevant informational cues. Twitter data from two ICO projects (Stratis and NEO), which achieved the highest return on investment at the time of data collection, are extracted and analyzed to identify informational themes. Our findings reveal multiple and distinctive themes of informational cues for each ICO project, demonstrating that transmitted signals vary across different stages and are generated by both the coin publisher and the public. This research illuminates the flow of informational cues between ICO initiators and potential investors on social media. By analyzing online communication threads using qualitative methods, this study significantly contributes to the understanding of information asymmetry in the context of ICOs.

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Section: Theoretical Background and Literature Reviewmentioning

confidence: 99%

Extracting informational cues between initial coin offering projects and the public

Shin,

Kim,

Hall

et al. 2024

Psychology and Marketing

View full text Add to dashboard Cite

show abstract

“…The papers devoted to this topic analyse a variety of questions related to the regulation of cryptoassets (also called tokens), including cryptocurrencies and ICOs (e.g. Gurrea-Martínez and Remolina, 2018; Wiśniewska, 2018). These assets are not addressed by any accounting standards, that leads to challenges in their classification and measurement and reflects the lack of economic characteristics for a “standard” intangible asset (Procházka, 2018) or a financial asset (Smith et al , 2019).…”

Section: Key Research Topics: Focus and Critiquementioning

confidence: 99%

Blockchain in accounting research: current trends and emerging topics

Garanina

Ranta

Dumay

2021

AAAJ

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PurposeThis paper provides a structured literature review of blockchain in accounting. The authors identify current trends, analyse and critique the key topics of research and discuss the future of this nascent field of inquiry.Design/methodology/approachThis study’s analysis combined a structured literature review with citation analysis, topic modelling using a machine learning approach and a manual review of selected articles. The corpus comprised 153 academic papers from two ranked journal lists, the Association of Business Schools (ABS) and the Australian Business Deans Council (ABDC), and from the Social Science Research Network (SSRN). From this, the authors analysed and critiqued the current and future research trends in the four most predominant topics of research in blockchain for accounting.FindingsBlockchain is not yet a mainstream accounting topic, and most of the current literature is normative. The four most commonly discussed areas of blockchain include the changing role of accountants; new challenges for auditors; opportunities and challenges of blockchain technology application; and the regulation of cryptoassets. While blockchain will likely be disruptive to accounting and auditing, there will still be a need for these roles. With the sheer volume of information that blockchain records, both professions may shift out of the back-office toward higher-profile advisory roles where accountants try to align competitive intelligence with business strategy, and auditors are called on ex ante to verify transactions and even whole ecosystems.Research limitations/implicationsThe authors identify several challenges that will need to be examined in future research. Challenges include skilling up for a new paradigm, the logistical issues associated with managing and monitoring multiple parties all contributing to various public and private blockchains, and the pressing need for legal frameworks to regulate cryptoassets.Practical implicationsThe possibilities that blockchain brings to information disclosure, fraud detection and overcoming the threat of shadow dealings in developing countries all contribute to the importance of further investigation into blockchain in accounting.Originality/valueThe authors’ structured literature review uniquely identifies critical research topics for developing future research directions related to blockchain in accounting.

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“…However, with the introduction of new financing tools and its associated promises, also challenges in terms of regulatory uncertainty, cost level and large risk of scams emerge (Wi sniewska, 2018). Against this backdrop, some research (Rohr and Wright, 2017;Zhang et al, 2018;Dobrauz-Saldapenna and Klebeck, 2019) particularly devoted to the legal and regulatory challenges that token sales entail and provide potential guidelines and insights on how to tackle these problems to improve investor protection.…”

Section: Optimizationmentioning

confidence: 99%

Optimization of special cryptocurrency portfolios

Schellinger

2020

JRF

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Purpose This paper aims to elaborate on the optimization of two particular cryptocurrency portfolios in a mean-variance framework. In general, cryptocurrencies can be classified to as coins and tokens where the first can be thought of as a medium of exchange and the latter accounts for security or utility tokens depending upon its design. Design/methodology/approach Against this backdrop, this empirical study distinguishes, in particular, between pure coin and token portfolios. Both portfolios are optimized by maximizing the Sharpe ratio and, subsequently, compared with alternative portfolio strategies. Findings The empirical findings demonstrate that the maximum utility portfolio of coins, with a risk aversion of λ = 10, outweighs alternative frameworks. The portfolios optimized by maximizing the Sharpe ratio for both coins and tokens indicate a rather poor performance. Testing the maximized utility for different levels of risk aversion confirms the findings of this empirical study and confers them more robustness. Research limitations/implications Further investigation is strongly recommended as tokens represent a new phenomenon in the cryptocurrency universe, for which only a limited amount of data are available, which restricts the sampling. Furthermore, future study is to include more sophisticated optimization models using different constraints in portfolio creation. Practical implications In light of the persistently substantial volatility in cryptocurrency markets, the empirical findings assert that portfolio managers are advised to construct a global minimum variance portfolio. In the absence of sophisticated optimization models, private investors can invest according to the market values of cryptocurrencies. Despite minor differences in the risk and reward ratios of the portfolios tested, tokens tend to be more speculative, especially, if the Tether token is excluded, which may require enhanced supervision and investor protection by regulating authorities. Originality/value As the current literature investigates on diversification effects of blended cryptocurrency portfolios rather than making an explicit distinction, this paper reflects one of the first to explore the investability and role of diversifying coins and tokens using a classic Markowitz approach.

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The Initial Coin Offering – Challenges and Opportunities

Cited by 8 publications

References 0 publications

Extracting informational cues between initial coin offering projects and the public

Extracting informational cues between initial coin offering projects and the public

Blockchain in accounting research: current trends and emerging topics

Optimization of special cryptocurrency portfolios

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