Initial Coin Offerings (ICOs), i.e. the initial offer of a crypto-token, represent an increasingly popular method to raise money. However, the determinants of ICOs´ returns for investors are still overlooked. Following this cue, the empirical outcomes of our study based on crypto-tokens issued between 2017 and 2018 evidence the main determinants of ICOs´ returns: first, crypto-tokens returns are positively associated to Ether’s returns; second, ICO price is negatively associated to later price increases; third, crypto-tokens returns are lower when they are offered in presale; finally, the more a crypto-token price increases between the ICO and the listing-date on the secondary-market and the more its price rises in the following month. In so doing, we contribute to a better understanding of the ICO phenomenon and highlight which aspects may benefit fund raising, which are relevant for the establishment of new startups and more broadly for the economic development of a country.

Collecting Money through Blockchain Technologies: First Insights on the Determinants of the Return on Initial Coin Offerings / Cappa, Francesco; Pinelli, Michele. - In: INFORMATION TECHNOLOGY FOR DEVELOPMENT. - ISSN 0268-1102. - 27:3(2021), pp. 561-578. [10.1080/02681102.2020.1801564]

Collecting Money through Blockchain Technologies: First Insights on the Determinants of the Return on Initial Coin Offerings

Francesco Cappa
;
Michele Pinelli
2021

Abstract

Initial Coin Offerings (ICOs), i.e. the initial offer of a crypto-token, represent an increasingly popular method to raise money. However, the determinants of ICOs´ returns for investors are still overlooked. Following this cue, the empirical outcomes of our study based on crypto-tokens issued between 2017 and 2018 evidence the main determinants of ICOs´ returns: first, crypto-tokens returns are positively associated to Ether’s returns; second, ICO price is negatively associated to later price increases; third, crypto-tokens returns are lower when they are offered in presale; finally, the more a crypto-token price increases between the ICO and the listing-date on the secondary-market and the more its price rises in the following month. In so doing, we contribute to a better understanding of the ICO phenomenon and highlight which aspects may benefit fund raising, which are relevant for the establishment of new startups and more broadly for the economic development of a country.
2021
Initial Coin Offering, blockchain, crypto-token, economic development, startup
Collecting Money through Blockchain Technologies: First Insights on the Determinants of the Return on Initial Coin Offerings / Cappa, Francesco; Pinelli, Michele. - In: INFORMATION TECHNOLOGY FOR DEVELOPMENT. - ISSN 0268-1102. - 27:3(2021), pp. 561-578. [10.1080/02681102.2020.1801564]
File in questo prodotto:
File Dimensione Formato  
Accepted Manuscript - Collecting Money through Blockchain Technologies....pdf

Solo gestori archivio

Tipologia: Documento in Pre-print
Licenza: DRM (Digital rights management) non definiti
Dimensione 621.97 kB
Formato Adobe PDF
621.97 kB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/195739
Citazioni
  • Scopus 20
  • ???jsp.display-item.citation.isi??? 18
social impact