Cyber risks and initial coin offerings: Evidence from the world

The quest for ICO: Identifying and prioritising the factors influencing initial coin offering selection

“…ICOs are prone to several risks that have been explored extensively by researchers: fraud and thefts (Tiwari et al, 2020;Benedetti and Kostovetsky, 2021), illegal activities and money laundering (Foley et al, 2019;Ivashchenko et al, 2018), cyber risks (An et al, 2021;Hashemi et al, 2020) and data privacy risks (Chen, 2018). Insecurity among investors about their rights and claims in ICO due to ambiguity about the treatment of tokens as securities (Hacker and Thomale, 2018) may cause fiasco in the ICO markets and crypto exchanges.…”

“…In short span, ICOs have gained popularity amongst issuers and investors primarily due to technological upgradation (Fisch, 2019), the inexistence of rigid regulatory guidelines (Bellavitis et al, 2020;Huang et al, 2020), raising funds without any territorial restrictions (Varsheny and Shrivastava, 2020) and without any intermediaries, thus eliminating opportunities for manipulation and reducing transaction expenses (Howell et al, 2020). The research outlines various dimensions of ICO like ICO as emerging entrepreneurial funding (Howell et al, 2020;Fisch, 2019); its success factors (Campino et al, 2022;Fisch, 2019;Lee et al, 2021;Huang et al, 2020); inherent risks (Tiwari et al, 2020;Benedetti and Kostovetsky, 2021;An et al, 2021;Hashemi et al, 2020;Ivashchenko et al, 2018;Momtaz, 2019;Ibba et al, 2018;Hacker and Thomale, 2018) and regulatory issues (Barone and Masciandaro, 2019;Barsan, 2017;Rodrigues, 2018;Maume and Fromberger, 2019). However, there are five research gaps that remain.…”

Initial Coin offerings: what rights do investors have?

“…A closely related, but distinct study is An, Hou and Liu (2019b). The authors exploit variations in national cyberattack risks to study what coping mechanisms ICO ventures have and how investors respond to these mechanisms in high attack risk environment.…”

Cyber Attacks, Spillovers and Contagion in the Cryptocurrency Markets

“…Thirdly, the mining industry has started to offer computational power for rent, which significantly lowers the initial investment required (Shanaev et al, 2019). An et al (2020) argue that the negative impacts of cyber-attacks can be mitigated if the institutions protect investor better in anti-director rights (La Porta et al 2002), the degree of control on managers' self-dealing activities (Djankov et al 2008), the extent to which lenders can collect a commercial debt at ease, and the level of protection on private foreign investment (Acemoglu and Johnson 2005), which institutions believe to be the most important for firm access to external finance.…”

“…Given their increasing importance, a number of studies have been carried out to analyse the main features of these newly created markets, including returns and risk (e.g., Balciar et al, 2017;Liu and Tsyvinski, 2018;Caporale and Zekokh, 2019), market efficiency (e.g., Urquhart, 2016;Bariviera, 2017;Nadarajah and Chu, 2017) and anomalies (Caporale et al, 2018;Caporale and Plastun, 2019a, 2019b, 2019c, illegal activities (Foley et al, 2018Gandal et al, 2018;Griffin and Shams, 2018), hedging properties (e.g., Dyhrberg 2016aDyhrberg , 2016bBaur et al, 2018;Bouri et al, 2017aBouri et al, , 2017bBouri et al, , 2017c, initial coin offerings (ICO) (Kostovetsky and Benedetti. 2018;Howell et al, 2018;Lee et al, 2018;Li and Mann, 2018;Malinova and Park, 2017;An et al, 2020), the effects of cyber-attacks An et al, 2020;Shanaev et al, 2019), and the economic implications of the emergence of this new type of asset (e.g., Böhme et al, 2015;Dwyer, 2015;Harvey, 2016;Raskin and Yermack 2016;Bariviera et al, 2017;Biais et al, 2018;Schilling and Uhlig 2018).…”