STO vs. ICO: A Theory of Token Issues under Moral Hazard and Demand Uncertainty

Miglo, Anton

doi:10.3390/jrfm14060232

Cited by 19 publications

(15 citation statements)

References 62 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Entrepreneurs learn information about market demand by observing the price of tokens issued during an ICO. One can argue that an ICO will be preferred to an STO if the degree of demand uncertainty is relatively large (Miglo 2021c). This is indirectly consistent with the spirit of Amsden and Schweizer (2018).…”

Section: Learning Market Demandsupporting

confidence: 59%

Theories of crowdfunding and token issues: a review

Miglo

2022

SSRN Journal

View full text Add to dashboard Cite

Section: Learning Market Demandsupporting

confidence: 59%

Theories of crowdfunding and token issues: a review

Miglo

2022

SSRN Journal

View full text Add to dashboard Cite

“…Concerning a financing problem for an innovative firm that is launching a web-based platform, Miglo (2021) argued that hybrid tokens can help the firm better deal with both the moral hazard problems and demand uncertainty. Jehan (2021) also recognized that risk is a big concern for anyone contemplating investing in new, especially innovative ventures and suggested an alternative venture investment approach called diminishing Musharakah (DM) which has roots in Islamic modes of investment and is more suited for ventures with a higher risk profile because it focused on four key ingredients, due diligence, flexibility, moral hazard reduction, and risk reduction.…”

Section: Moral Hazardmentioning

confidence: 99%

Information Asymmetry and Card Debt Crisis in Taiwan

Chang¹

2022

Bulletin of Applied Economics

View full text Add to dashboard Cite

Following the Asian Financial Crisis, South Korea, Hong Kong, and Taiwan experienced card debt crisis in 2001, 2002 and 2005, respectively. Various countries have studied and tried to find the factors that lead to the card debt crisis, hoping that the proposed countermeasures can effectively solve the problem. However, these are only practical operations and observations. Therefore, through information asymmetry, this article constructs a model of card debt crisis from adverse selection and moral hazard, and theoretically provides the government or competent authority with a policy basis. This article employs document analysis, combined with qualitative and quantitative data, to test the research hypotheses. The verification result is supported regardless of hypotheses tests for adverse selection, or moral hazard and confirms that information asymmetry and market failure do exist in the Taiwan credit card market. The policy implication of the article is that the government or competent authority should stop the illusion of free market mechanism and have to be responsible for employing countermeasures to face the crisis. JEL classification numbers: G01,G21,G28. Keywords: Card debt crisis, Information asymmetry, Adverse selection, Moral hazard , Document analysis, Market failure.

show abstract

“…In designing an STO, investors' rights and obligations must be included in the security token, whether as a code or procedure (Miglo, 2021). The exchanges-related regulations are also considered essential components that need to be included in the STO mechanism (Kondova and Simonella, 2019).…”

Section: Security Token Offeringmentioning

confidence: 99%