Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Howell, Sabrina T.; Niessner, Marina; Yermack, David

doi:10.3386/w24774

Cited by 145 publications

(123 citation statements)

References 28 publications

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“…Now that this cryptoasset bears more similarity with traditional assets, one would expect also the main predictions of neoclassical finance to come true. In fact, in a recent empirical study of cryptotokens, Howell et al (2018) demonstrate the effects of asymmetric information on tokens trading: their liquidity and trading volume are positively associated with the information inflow. The latter is achieved through voluntary disclosure of information (including the operating budget and their business plans), and quality signaling (e.g.…”

Section: Socio-economic Perspectivesmentioning

confidence: 98%

Cryptocurrencies: market analysis and perspectives

2019

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The papers in this special issue focus on the emerging phenomenon of cryptocurrencies. Cryptocurrencies are digital financial assets, for which ownership and transfers of ownership are guaranteed by a cryptographic decentralized technology. The rise of cryptocurrencies' value on the market and the growing popularity around the world open a number of challenges and concerns for business and industrial economics. Using the lenses of both neoclassical and behavioral theories, this introductory article discusses the main trends in the academic research related to cryptocurrencies and highlights the contributions of the selected works to the literature. A particular emphasis is on socio-economic, misconduct and sustainability issues. We posit that cryptocurrencies may perform some useful functions and add economic value, but there are reasons to favor the regulation of the market. While this would go against the original libertarian rationale behind cryptocurrencies, it appears a necessary step to improve social welfare.

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Section: Socio-economic Perspectivesmentioning

confidence: 98%

Cryptocurrencies: market analysis and perspectives

2019

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“…used monetary policies to explain how some stablecoins can keep their prices stable.Another branch of the literature views the digital tokens (mostly ICO tokens) as investment vehicles and tries to compare them with "securities. "Lyandres, Palazzo, and Rabetti (2019) argued that theories developed for IPO (Initial Public Offering) for equities can be applied for ICO (Initial Coin Offering) for tokens Howell, Niessner, and Yermack (2018). confirmed certain similarities of ICO and IPO.…”

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confidence: 89%

Should All Blockchain-Based Digital Assets be Classified Under the Same Asset Class?

2019

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The literature is well aware that blockchain-based digital assets would constitute a new asset class. However, it has been rather silent about the distinction among them. This paper discusses the digital tokens' differences and similarities by their (i) creation and initial distribution; (ii) intended properties; (iii) actual usage; and (iv) behaviors. Although the digital tokens are indistinguishable in some aspects, they differ in the way they are created and initially distributed. Some of them have distinguishable risk and return profiles. Therefore, we take a view that the digital tokens take (or will take) different roles in the financial systems; should be classified under different asset classes; and should be subject to different sets of regulations (although some may overlap).

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“…At the same time, the appearance of the Asia Security Token Alliance (ASTA) may be a signal of changing Asian involvement into STOs. According to the InWARA's report 17 , worldwide the number of STOs showed rapid growth in 2019, growth in 14 The ICObench Analytics team (2019). URL: https://coin360.…”

Section: Conceptmentioning

confidence: 99%

Comparative Analysis of ICO, DAOICO, IEO and STO. Case Study

Alina

2019

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The article examines the problem of the ICO (Initial Coin Offering, from English — “initial offer of coins, initial placement of coins”). The information source is the ICO rating data of the return on investment in blockchain startups. The methodological base of the research is a situational comparative analysis of the ICO, DAOICO, IEO and STO and systematization of information. The author analyzes three new ICO models. The first one includes elements of Decentralized Autonomous Organizations (DAO). Its aim is to minimize the difficulties and risks associated with the ICO. The second model (Initial Exchange Offering (IEO), from English — “primary exchange offer”) is designed to minimize risks, liquidity problems and a delay in listing tokens at the end of the token sale. The third model — the Security Token Offering (STO, from English — “offer of security token”) — was designed to support real assets and comply with the SEC requirements. These models are a new direction for small and medium enterprises and investors. The absence of any scientific work emphasizes the relevance and scientific novelty of the study. The article is a follow-up of the empirical work related to the success of the ICO, as well as the basis for its revision using the case study results.

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Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Cited by 145 publications

References 28 publications

Cryptocurrencies: market analysis and perspectives

Cryptocurrencies: market analysis and perspectives

Should All Blockchain-Based Digital Assets be Classified Under the Same Asset Class?

Comparative Analysis of ICO, DAOICO, IEO and STO. Case Study

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