Résumés
Abstract
This study investigates Initial Coin Offerings (ICOs) as an innovative financing channel, focusing on the factors influencing their success and the project start-up post-ICO. Using a hand-collected dataset of 410 ICOs from the 2016–2018 period, we analyze ICOs as a mechanism that enables startups to raise significant capital. We categorize the success factors into voluntary disclosure quality, team characteristics, deal characteristics, and country of issuance or geographic location. We also examine security and payment tokens to explore their differing impacts on ICO outcomes. Our study contributes to the extant literature by offering a comprehensive view of the factors that drive ICO success and those that explain post-ICO performance. Our study provides critical insights for investors, regulators, and entrepreneurs.
Keywords:
- Tokens,
- Success factors,
- post-ICO performance,
- Project start-up driver
Résumé
Cette étude examine les Offres Initiales de Pièces (ICO) comme un canal de financement innovant, en se concentrant sur les facteurs influençant leur succès et le démarrage du projet après l’ICO. Utilisant un ensemble de données collecté manuellement de 410 ICOs de la période 2016-2018, nous analysons les ICOs en tant que mécanisme permettant aux startups de lever des capitaux importants. Nous catégorisons les facteurs de succès en qualité de divulgation volontaire, caractéristiques de l’équipe, caractéristiques de l’offre, et pays d’émission ou localisation géographique. Nous examinons également les tokens de sécurité et de paiement pour explorer leurs impacts différents sur les résultats des ICO. Notre étude contribue à la littérature existante en offrant une vue complète des facteurs qui entraînent le succès des ICO et de ceux qui expliquent la performance post-ICO. Notre étude fournit des perspectives critiques pour les investisseurs, les régulateurs et les entrepreneurs.
Mots-clés :
- Tokens,
- Facteurs de succès,
- Performance post-ICO,
- Moteur de démarrage de projet
Resumen
Este estudio investiga las Ofertas Iniciales de Monedas (ICO) como un canal de financiamiento innovador, centrándose en los factores que influyen en su éxito y en el arranque del proyecto post-ICO. Utilizando un conjunto de datos recopilados manualmente de 410 ICOs del período 2016-2018, analizamos las ICOs como un mecanismo que permite a las startups recaudar capital significativo. Categorizamos los factores de éxito en calidad de divulgación voluntaria, características del equipo, características de la oferta y país de emisión o ubicación geográfica. También examinamos tokens de seguridad y de pago para explorar sus diferentes impactos en los resultados de las ICOs. Nuestro estudio contribuye a la literatura existente ofreciendo una visión completa de los factores que impulsan el éxito de las ICOs y aquellos que explican el rendimiento post-ICO. Nuestro estudio proporciona perspectivas críticas para inversores, reguladores y emprendedores.
Palabras clave:
- Tokens,
- Factores de éxito,
- Rendimiento post-ICO,
- Impulsor de inicio de proyecto
Parties annexes
Bibliography
- Adhami, S., Giudici, G., & Martinazzi, S. (2018). Why do businesses go crypto? An empirical analysis of Initial Coin Offerings. Journal of Economics and Business, 100, 64–75. https://doi.org/10.1016/j.jeconbus.2018.04.001.
- Ahmad, M. F., Kowalewski, O., & Pisany, P. (2023). What determines initial coin offering success: A cross-country study. Economics of Innovation and New Technology, 32(5), 622–645. https://doi.org/10.1080/10438599.2021.1982712.
- Amsden, R., & Schweizer, D. (2018). Are blockchain crowdsales the new “gold rush”? Success determinants of Initial Coin Offerings [Working paper], available at SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3163849 . https://doi.org/10.2139/ssrn.3163849.
- Aslan, A., Şensoy, A., & Akdeniz, L. (2023). Determinants of ICO success and post-ICO performance. Borsa Istanbul Review, 23(1), 217–239. https://doi.org/10.1016/j.bir.2022.10.005.
- Belitski, M., & Boreiko, D. (2022). Success factors of initial coin offerings. Journal of Technology Transfer, 47(6), 1690–1706. https://doi.org/10.1007/s10961-021-09894-x.
- Benedetti, H., & Kostovetsky, L. (2021). Digital tulips? Returns to investors in initial coin offerings. Journal of Corporate Finance, 66, 101786. https://doi.org/10.1016/j.jcorpfin.2020.101786.
- Bourveau, T., De George, E. T., Ellahie, A., & Macciocchi, D. (2022). The role of disclosure and information intermediaries in an unregulated capital market: Evidence from initial coin offerings. Journal of Accounting Research, 60(1), 129–167. https://doi.org/10.1111/1475-679X.12404.
- Catalini, C., & Gans, J. S. (2018). Initial coin offerings and the value of crypto tokens. SSRN Electronic Journal. National Bureau of Economic Research (No, w.24418). https://doi.org/10.2139/ssrn.3137213,.
- Chitsazan, H., Bagheri, A., & Tajeddin, M. (2022). Initial coin offerings (ICOs) success: Conceptualization, theories and systematic analysis of empirical studies. Technological Forecasting and Social Change, 180, 121729. https://doi.org/10.1016/j.techfore.2022.121729.
- Chod, J., & Lyandres, E. (2021). A theory of ICOs: Diversification, agency, and information asymmetry. Management Science, 67(10), 5969–5989. https://doi.org/10.1287/mnsc.2020.3754 .
- Cohney, S., Hoffman, D. A., Sklaroff, J., & Wishnick, D. A. (2018). Coin-operated capitalism. SSRN Electronic Journal, 119(3), 591–676. https://doi.org/10.2139/ssrn.3215345.
- Courtney, C., Dutta, S., & Li, Y. (2017). Resolving information asymmetry: Signaling, endorsement, and crowdfunding success. Entrepreneurship Theory and Practice, 41(2), 265–290. https://doi.org/10.1111/etap.12267.
- Fisch, C. (2019). Initial coin offerings (ICOs) to finance new ventures. Journal of Business Venturing, 34(1), 1–22. https://doi.org/10.1016/j.jbusvent.2018.09.007.
- Fisch, C., & Momtaz, P. P. (2020). Institutional investors and post-ICO performance: An empirical analysis of investor returns in initial coin offerings (ICOs). Journal of Corporate Finance, 64. https://doi.org/10.1016/j.jcorpfin.2020.101679.
- Gächter, I., & Gächter, M. (2021). Success factors in ICOs: Individual firm characteristics or lucky timing? Finance Research Letters, 40, 101715. https://doi.org/10.1016/j.frl.2020.101715.
- Giudici, G., & Adhami, S. (2019). The impact of governance signals on ICO fundraising success. Journal of Industrial and Business Economics, 46(2), 283–312. https://doi.org/10.1007/s40812-019-00118-w.
- Hackober, C., & Bock, C. (2021). Which investors’ characteristics are beneficial for initial coin offerings? Evidence from blockchain technology-based firms. Journal of Business Economics, 91(8), 1085–1124. https://doi.org/10.1007/s11573-021-01029-w.
- Hornuf, L., & Schwienbacher, A. (2018). Market mechanisms and funding dynamics in equity crowdfunding. Journal of Corporate Finance, 50, 556–574. https://doi.org/10.1016/j.jcorpfin.2017.08.009.
- Howell, S. T., Niessner, M., & Yermack, D. (2020). Initial coin offerings: Financing growth with cryptocurrency token sales. Review of Financial Studies, 33(9), 3925–3974. https://doi.org/10.1093/rfs/hhz131.
- Huang, W., Meoli, M., & Vismara, S. (2020). The geography of initial coin offerings. Small Business Economics, 55(1), 77–102. https://doi.org/10.1007/s11187-019-00135-y.
- ICObench website. What is the KYC procedure for the ICO team and how is it conducted? https://icobench.com/faq#q-9-1.
- Johnson, M. A., Stevenson, R. M., & Letwin, C. R. (2018). A woman’s place is in the . . . startup! Crowdfunder judgments, implicit bias, and the stereotype content model. Journal of Business Venturing, 33(6), 813–831. https://doi.org/10.1016/j.jbusvent.2018.04.003.
- Lipusch, N. (2018). Initial coin offerings–a paradigm shift in funding disruptive innovation. Available at SSRN 3148181.
- Lyandres, E., Palazzo, B., & Rabetti, D. (2022). Initial coin offering (ICO) success and post-ICO performance. Management Science, 68(12), 8658–8679. https://doi.org/10.1287/mnsc.2022.4312.
- Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. https://doi.org/10.1016/j.jbusvent.2013.06.005.
- Momtaz, P. P. (2021). Initial coin offerings, asymmetric information, and loyal CEOs. Small Business Economics, 57(2), 975–997. https://doi.org/10.1007/s11187-020-00335-x.
- Roosenboom, P., Van der Kolk, T., & De Jong, A. (2020). What determines success in initial coin offerings? Venture Capital, 22(2), 161–183. https://doi.org/10.1080/13691066.2020.1741127.
- Sapkota, N., & Grobys, K. (2023). Fear sells: On the sentiment deceptions and fundraising success of initial coin offerings. Journal of International Financial Markets, Institutions and Money, 83, 101716. https://doi.org/10.1016/j.intfin.2022.101716.
- Schaefer, C., & Strese, S. (2021). Beyond fundraising—Token dispersion and venture performance in initial coin offerings. In Academy of Management Proceedings (Vol. 2021, No. 1, p. 12522). Briarcliff Manor. Academy of Management, 2021(1), NY10510. https://doi.org/10.5465/AMBPP.2021.64.
- Shifflett, S., & Jones, C. (2018). Buyer beware: Hundreds of Bitcoin wannabes show hallmarks of fraud. Wall Street Journal, 17.
- Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010.
- Spence, M. (2002). Signaling in retrospect and the informational structure of markets. American Economic Review, 92(3), 434–459. https://doi.org/10.1257/00028280260136200.
- Xu, W., Wang, T., Chen, R., & Zhao, J. L. (2021). Prediction of initial coin offering success based on team knowledge and expert evaluation. Decision Support Systems, 147. https://doi.org/10.1016/j.dss.2021.113574.
- Yermack, D. (2015). Is bitcoin a real currency? An economic appraisal. In D. L. K. Chuen (Ed.), Handbook of digital currency (pp. 31–43). Academic Press. https://doi.org/10.1016/C2014-0-01905-3.