Initial Coin Offerings: Early Evidence on the Role of Disclosure in the Unregulated Crypto Market

ICO vs. Equity Financing Under Imperfect, Complex and Asymmetric Information

“…A higher level of complexity and respectively risk of campaign failure makes ICO less desirable. This is in line with, for example, de Jong, Roosenboom and van der Kolk (2018) and Bourveau, De George, Ellahie and Macciocchi (2018) that …nd that ICO with higher level of transparency are more likely to succeed. Finaly we analyze the case with asymmetric infromation and argue that unlike traditional equity …nancing ICO can be used by high-quality …rms as a signal of quality.…”

“…8 Proposition 2 implies that high-quality projects may use ICO as a signal of quality. This prediction has not been directly tested but seems to be consistent with the spirit of Bourveau et al (2018), De Jang et al (2018), O…r et al (2019) and Benedetti et al (2018) that suggest that in order to be successfull, an ICO should meet high quality standards including the quality of "whitepapers" (technical documentation describing ICO), good level of transparency etc. It is also consistent with an idea that ICO are more likely to succeed if they use KYC or DAICO procedures that reduce the chances of fraud and ultimately increase the campaign quality.…”

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

“…On the amount raised, including failure to meet a set target, see Adhami et al (2018), , Ante et al (2018), Blaseg (2018), Burns and Moro (2018), Davydiuk et al (2018), Feng et al (2018), Fenu et al (2018), Fisch (2018), , Momtaz (2018b), Momtaz (2018c), Rhue (2018b), Albrecht et al (2019), Ante and Fiedler (2019), Cai and Gomaa (2019), Cerchiello et al (2019), Chen (2019), Johnson and Yi (2019), Masiak et al (2019), Philippi et al (2019), and Wu et al (2019). On liquidity see Bourveau et al (2018), Lyandres et al (2018), and Fisch and Momtaz (2019). On trading volume see Florysiak and Schandlbauer (2018).…”

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

“…On the amount raised, including failure to meet a set target, see Adhami et al (2018), , Ante et al (2018), Blaseg (2018), Burns and Moro (2018), Davydiuk et al (2018), Feng et al (2018), Fenu et al (2018), Fisch (2018), , Momtaz (2018b), Momtaz (2018c), Rhue (2018b), Albrecht et al (2019), Ante and Fiedler (2019), Cai and Gomaa (2019), Cerchiello et al (2019), Chen (2019), Johnson and Yi (2019), Masiak et al (2019), Philippi et al (2019), and Wu et al (2019). On liquidity see Bourveau et al (2018), Lyandres et al (2018), and Fisch and Momtaz (2019). On trading volume see Florysiak and Schandlbauer (2018).…”