Blockchain and Initial Coin Offerings: Blockchain’s Implications for Crowdfunding

Arnold, Laurin; Brennecke, Martin; Camus, Paula; Fridgen, Gilbert; Guggenberger, Tobias; Radszuwill, Sven; Rieger, Alexander; Schweizer, André; Urbach, Nils

doi:10.1007/978-3-319-98911-2_8

Cited by 40 publications

(24 citation statements)

References 25 publications

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“…ICOs also differ from IPOs in that, to date, they largely have not complied with any registration or disclosure requirements under US securities laws (Arnold et al 2019;Day and Osborne 2018). Some of these ICOs have raised immense sums of money (Rohr and Wright 2018).…”

Section: Initial Coin Offeringsmentioning

confidence: 99%

Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty

Cumming

Johan

Pant

2019

JRFM

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Distributed ledger technology, also known as the blockchain, is gaining traction globally. Blockchain offers a secure validation mechanism and decentralized mass collaboration. Cryptocurrencies make use of this technology as a new asset class for investors worldwide. Cryptocurrencies are being used by companies to raise capital via initial coin offerings (ICOs). The substantial inflow of unregulated capital into a transactional and transnational industry has aroused interest from not just investors, but also national securities and monetary regulatory agencies. In this paper, we review the Security and Exchange Commission’s initial statements and subsequent pronouncements on ICO’s to illustrate the potential problems with applying an older legal framework to an ever-evolving ecosystem. Recognizing the inability of enforcement within existing regulatory frameworks, we discuss the importance of regulation of the crypto asset class and internal collaboration between government agencies and developers in the establishment of an ecosystem that integrates investor protection and investments.

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Section: Initial Coin Offeringsmentioning

confidence: 99%

Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty

Cumming

Johan

Pant

2019

JRFM

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“…Despite its recent success, crowdfunding is also characterized by certain weaknesses. Thus, users of crowdfunding are usually charged a commission fee based on the total funds raised [18]. Further costs arise due to auxiliary services such as payment providers, which are necessary to process payments among the involved parties [19].…”

Section: Crowdfundingmentioning

confidence: 99%

“…While crowdfunding platforms formed as a solution to mitigate these problems, the mechanisms used by these platforms sometimes perform very weakly (see [20][21][22][23]. Also, the mechanisms employed by crowdfunding platforms constrain how crowdfunding can be conducted [18]. ICOs developed as a new crowdfunding mechanism that bears the potential to solve these problems [13].…”

Section: Crowdfundingmentioning

confidence: 99%

“…Since ICOs share a lot of similarities with crowdfunding (e.g. they are conducted over the web and rely on the principle of crowdsourcing) they are considered as a new crowdfunding mechanism [13,18]. However, one important difference to conventional crowdfunding mechanisms is that ICOs are conducted via a blockchain.…”

Section: Icos: a New Type Of Blockchain-based Crowdfundingmentioning

confidence: 99%

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Managing Initial Coin Offerings: Towards a Taxonomy of ICO Processes

Lipusch

Dellermann

Ebel

2019

Proceedings of the Annual Hawaii International Conference on System Sciences

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Initial Coin Offerings are a new type of crowdbased fundraising mechanism that uses the blockchain to issue tokens to a crowd of people in exchange for funds that blockchain start-ups use to develop their business. Unfortunately, due to the recency of this new phenomenon, there is no systematic understanding of the ICO process and its underlying process characteristics. However, companies engaging in ICOs should be able to evaluate and choose the right process steps to best achieve their goal. Against this background, we develop a taxonomy for ICO processes. In contrast to previous work, this classification scheme focuses exclusively on the processual nature of ICOs and its underlying mechanisms.

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“…BT, however, is not limited to cryptocurrencies. There are already existing blockchain-based applications in industry and the public sector like crowdfunding (Conley, 2017;Li and Mann, 2018;Arnold et al, 2019), tracking of goods in supply chains (Abeyratne and Monfared, 2016;Tian, 2016;Hepp et al, 2018), authentication (Cruz et al, 2018;Ihle and Sanchez, 2018), and voting services (Swan, 2015a;Osgood, 2016); many more are under development (Brandon, 2016;Davidson et al, 2016;Fanning and Centers, 2016;Nguyen, 2016;Scott, 2016). The Fraunhofer Institute for Scientific and Technical Trend Analysis (INT) in Germany published a study (Schütte et al, 2018) showing that currently BT can be most frequently found in applications used in the financial sector.…”

Section: Introductionmentioning

confidence: 99%

A Review on Blockchain Technology and Blockchain Projects Fostering Open Science

et al. 2019

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Many sectors, like finance, medicine, manufacturing, and education, use blockchain applications to profit from the unique bundle of characteristics of this technology. Blockchain technology (BT) promises benefits in trustability, collaboration, organization, identification, credibility, and transparency. In this paper, we conduct an analysis in which we show how open science can benefit from this technology and its properties. For this, we determined the requirements of an open science ecosystem and compared them with the characteristics of BT to prove that the technology suits as an infrastructure. We also review literature and promising blockchain-based projects for open science to describe the current research situation. To this end, we examine the projects in particular for their relevance and contribution to open science and categorize them afterwards according to their primary purpose. Several of them already provide functionalities that can have a positive impact on current research workflows. So, BT offers promising possibilities for its use in science, but why is it then not used on a large-scale in that area? To answer this question, we point out various shortcomings, challenges, unanswered questions, and research potentials that we found in the literature and identified during our analysis. These topics shall serve as starting points for future research to foster the BT for open science and beyond, especially in the long-term.

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Blockchain and Initial Coin Offerings: Blockchain’s Implications for Crowdfunding

Cited by 40 publications

References 25 publications

Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty

Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty

Managing Initial Coin Offerings: Towards a Taxonomy of ICO Processes

A Review on Blockchain Technology and Blockchain Projects Fostering Open Science

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