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Initial Coin Offering (ICO) Success and Post-ICO Performance

Author

Listed:
  • Evgeny Lyandres

    (Coller School of Management, Tel Aviv University, 6997801 Tel Aviv, Israel)

  • Berardino Palazzo

    (Board of Governors of the Federal Reserve System, Washington, District of Columbia 20551)

  • Daniel Rabetti

    (Coller School of Management, Tel Aviv University, 6997801 Tel Aviv, Israel)

Abstract

We compile a comprehensive data set of initial coin offerings (ICOs) from 19 data sources including 11 ICO aggregators. We alleviate severe limitations of available ICO data by performing the first systematic analysis of ICO data quality. We use our data set to study determinants of ICO funding success as well as post-ICO operating performance and provide evidence on some novel determinants of initial and longer-term ICO success. Finally, we show that post-ICO operating performance is positively associated with contemporaneous token returns and is generally negatively associated with token return volatility, suggesting that post-ICO operating performance has financial ramifications.

Suggested Citation

  • Evgeny Lyandres & Berardino Palazzo & Daniel Rabetti, 2022. "Initial Coin Offering (ICO) Success and Post-ICO Performance," Management Science, INFORMS, vol. 68(12), pages 8658-8679, December.
    • Handle: RePEc:inm:ormnsc:v:68:y:2022:i:12:p:8658-8679
    DOI: 10.1287/mnsc.2022.4312
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    References listed on IDEAS

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    Cited by:

    1. Kreppmeier, Julia & Laschinger, Ralf & Steininger, Bertram I. & Dorfleitner, Gregor, 2023. "Real estate security token offerings and the secondary market: Driven by crypto hype or fundamentals?," Journal of Banking & Finance, Elsevier, vol. 154(C).

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