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What determines initial coin offering success: a cross-country study

Author

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  • Muhammad Farooq Ahmad
  • Oskar Kowalewski
  • Paweł Pisany

Abstract

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.

Suggested Citation

  • Muhammad Farooq Ahmad & Oskar Kowalewski & Paweł Pisany, 2023. "What determines initial coin offering success: a cross-country study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(5), pages 622-645, July.
    • Handle: RePEc:taf:ecinnt:v:32:y:2023:i:5:p:622-645
    DOI: 10.1080/10438599.2021.1982712
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    Cited by:

    1. José Campino & Ana Brochado & Álvaro Rosa, 2022. "Initial coin offerings (ICOs): Why do they succeed?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-35, December.
    2. An, Jiafu & Hou, Wenxuan & Liu, Xianda, 2022. "Historical Determinants of Fintech Development: Evidence from Initial Coin Offerings," Finance Research Letters, Elsevier, vol. 46(PB).
    3. Alessandro Bitetto & Paola Cerchiello, 2024. "Initial Coin Offerings: can ESG mitigate Underpricing?," DEM Working Papers Series 221, University of Pavia, Department of Economics and Management.

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    More about this item

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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