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Does Geopolitical Risk Matter for the Success of Initial Coin Offerings?

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  • Aristogenis Lazos
  • Laurent Pataillot

Abstract

This study investigates the effect of country‐specific geopolitical risk (GPR) on initial coin offering (ICO) success. The findings of this study reveal a positive relation. A plausible explanation may lie in prospect theory. When losses are more likely to take place, investors are risk‐seeking and may overweight the low probability of hitting a big win in their pursuit of high returns. As a result, they may invest in high GPR ICOs that, in turn, may have a positive effect on their success. High GPR ICOs that employ the know your customer scheme, however, exhibit a lower likelihood of success.

Suggested Citation

  • Aristogenis Lazos & Laurent Pataillot, 2026. "Does Geopolitical Risk Matter for the Success of Initial Coin Offerings?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 2754-2779, April.
    • Handle: RePEc:wly:ijfiec:v:31:y:2026:i:2:p:2754-2779
    DOI: 10.1002/ijfe.70070
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