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Security token offerings

Author

Listed:
  • Thomas Lambert

    (Erasmus University)

  • Daniel Liebau

    (Erasmus University)

  • Peter Roosenboom

    (Erasmus University)

Abstract

This paper posits that distinguishing security token offerings (STOs) from initial coin offerings (ICOs) is important for the study of entrepreneurial finance. We first provide a working definition of a security token and present an overview of the STO market using a unique STO sample. The STO activity developed after the end of the ICO market bubble. The STO market is, however, still a nascent market. STOs are geographically dispersed but concentrated in jurisdictions with accommodating securities laws. Next, we explore STO success factors. We show that various issuer and offering characteristics traditionally used in the ICO literature also matter for STO success. We also find that success is associated with good governance practices, consistent with the corporate finance literature. We conclude by discussing the implications of native digital securities, the next generation of security tokens, for entrepreneurial finance.

Suggested Citation

  • Thomas Lambert & Daniel Liebau & Peter Roosenboom, 2022. "Security token offerings," Small Business Economics, Springer, vol. 59(1), pages 299-325, June.
    • Handle: RePEc:kap:sbusec:v:59:y:2022:i:1:d:10.1007_s11187-021-00539-9
    DOI: 10.1007/s11187-021-00539-9
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    Cited by:

    1. Shih‐Chu Chou & Zhe‐An Li & Tawei Wang & Ju‐Chun Yen, 2023. "How the quality of initial coin offering white papers influences fundraising: Using security token offerings white papers as a benchmark," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 3-18, January.
    2. Muneer M. Alshater & Mayank Joshipura & Rim El Khoury & Nohade Nasrallah, 2023. "Initial Coin Offerings: a Hybrid Empirical Review," Small Business Economics, Springer, vol. 61(3), pages 891-908, October.
    3. 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).
    4. Kreppmeier, Julia & Laschinger, Ralf & Steininger, Bertram & Dorfleitner, Gregor, 2023. "Real Estate Security Token Offerings and the Secondary Market: Driven by Crypto Hype or Fundamentals?," Working Paper Series 23/6, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    5. Evgeny Popov & Anna Veretennikova & Sergey Fedoreev, 2022. "The Model of OTC Securities Market Transformation in the Context of Asset Tokenization," Mathematics, MDPI, vol. 10(19), pages 1-16, September.
    6. Luisa Faust & Maura Kolbe & Sasan Mansouri & Paul P. Momtaz, 2022. "The Crowdfunding of Altruism," JRFM, MDPI, vol. 15(3), pages 1-29, March.

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