What determines initial coin offering success: a cross-country study
, Oskar KOWALEWSKI
, Pawel PISANY
2023, Economics of Innovation and New Technology, 32(5), pp.622-645
Initial coin offering
corporate finance
innovation
entrepreneurship
Résumé
This study investigates the determinants of the presence and success of initial coin offering (ICO) campaigns using data on 503 ICOs from 60 countries launched between 2015 and 2018. The analysis is based on an individual project, considering a country-wide perspective. The results show that while insider retention and resource-related signals, such as the number of team members and advisors, contribute positively to the ICO’s funding success and post-ICO activity, presale offers and bonuses contributed negatively. Additionally, the results highlight that a country’s financial system development and ICO-related legal friendliness boost the market. The study also documents that a country’s culture strongly determines the ICO issue but less so its long-term performance.