The Mechanism of Ensuring Liquidity of Venture Capital

Collecting money through blockchain technologies: first insights on the determinants of the return on Initial Coin Offerings

“…Third, a more comprehensive understanding of the cryptocurrencies' environment could benefit from an investigation of the actors that play important roles in this system. Future research for example may investigate the contribution of founding teams, the relevance of senior advisors that sustain technologically expert but potentially inexperienced entrepreneurs and whether the assistance provided by crypto-currencies' exchanges allows IEOs (Barraza, 2019;Lacity et al, 2019;Matyushok et al, 2020) to outperform ICOs. Fourth, future research might be interested in investigating the effects of regulation on the diffusion and success of crypto-currencies.…”

“…Such criminal activities are incentivized by the purely digital nature of crypto-currencies (that are not backed by any underlying real asset connected to the business performance of a company), which makes them more similar to utilities than securities and thus more susceptible to market speculations. Security tokens, on the other hand, are a more recent kind of crypto-currency that represent tokenized versions of traditional securities (such as stocks and bonds), which thus clearly define the obligatory relationship between the buyer and the issuing company (Barraza, 2019;Lacity et al, 2019;Liu & Wang, 2019;Matyushok et al, 2020). As such, security tokens are more easily regulated, with some jurisdictions treating them as traditional securities (e.g.…”

“…While most often the new tokens' issuers arrange and manage the ICO-related activities themselves, sometimes the exchange where the tokens will be listed and traded (i.e. the secondary market) acts as a key marketing partner (Barraza, 2019;Lacity et al, 2019;Matyushok et al, 2020). In these casesthat are called Initial Exchange Offerings (IEO) and represent a very recent development (Barraza, 2019;Lacity et al, 2019;Matyushok et al, 2020) the exchange is also directly involved in the selection of the to-beissued crypto-tokens, which helps both the exchange secure the listing of the most promising new tokens and the startup obtain additional visibility and reassure investors that there will be a market for trading the tokens after the ICO.…”

“…the secondary market) acts as a key marketing partner (Barraza, 2019;Lacity et al, 2019;Matyushok et al, 2020). In these casesthat are called Initial Exchange Offerings (IEO) and represent a very recent development (Barraza, 2019;Lacity et al, 2019;Matyushok et al, 2020) the exchange is also directly involved in the selection of the to-beissued crypto-tokens, which helps both the exchange secure the listing of the most promising new tokens and the startup obtain additional visibility and reassure investors that there will be a market for trading the tokens after the ICO. After an ICO is concluded, in fact, while investors can always trade tokens privately, an exchange that provides a secondary market for the tokens increases the likelihood that these will be liquid and thus that investors will be able to monetize their investment.…”

The impact of lending availability and conditions for SMEs on the global development of venture financing systems

“…The first is venture capital, which came in addition to the second source -lending, and also digital finance, which has begun to gain popularity in recent years. [3] All three have their own limitation, first of all they all depend on the current economic, political, legislative state and rules and, most importantly, on the mentality of business in a particular region. We are talking about the opportunities and preferences of investors, the conditions and complexity of issuing and receiving loans from banks and the legal framework regarding the possibility of using digital money.…”