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Virtual Currencies, A New Business Development Model

Author

Listed:
  • Catalin DRAGOI

    (“Victor Slavescu” Centre for Financial and Monetary Research, Romanian Academy, Romania)

Abstract

On the background of the development and maturity of virtual currency markets a new type of business or company emerged. The classic method by which a company becomes public by winning funds from individual investors is by selling shares in an initial public offering. What is called "initial coin offering" is in the area of cryptocurrency equivalent to an initial public offering in the world of the main investments, the initial offer of the currency acting as a collector of funds. Most often, initial coin offerings are used by new companies to circumvent the rigorous and regulated process of capital increase demanded by investment funds or banks. The paper aims to analyse how virtual currency work, what their characteristics are, and whether they can be an economic development factor.

Suggested Citation

  • Catalin DRAGOI, 2019. "Virtual Currencies, A New Business Development Model," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 4(2), pages 129-134.
    • Handle: RePEc:brc:brccej:v:4:y:2019:i:2:p:129-134
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    References listed on IDEAS

    as
    1. Grégory Claeys & Maria Demertzis & Konstantinos Efstathiou, 2018. "Cryptocurrencies and monetary policy," Policy Contributions 26557, Bruegel.
    2. DOBRESCU, Edith Mihaela & DOBRESCU, Emilian M., 2017. "Future Of Virtual Currency," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 4(1), pages 118-124.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    virtual currency; initial coin offerings; business model;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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