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J. Risk Financial Manag. 2018, 11(4), 80; https://doi.org/10.3390/jrfm11040080

Blockchain-Based ICOs: Pure Hype or the Dawn of a New Era of Startup Financing?

1
Faculty of Business, Economics and Social Sciences, University of Hamburg, Von-Melle-Park 5, 20146 Hamburg, Germany
2
Blockchain Research Lab gGmbH, 20354 Hamburg, Germany
3
Frankfurt School of Finance & Management, Adickesallee 32-34, 60322 Frankfurt am Main, Germany
*
Author to whom correspondence should be addressed.
Received: 23 October 2018 / Accepted: 13 November 2018 / Published: 21 November 2018
(This article belongs to the Special Issue Alternative Assets and Cryptocurrencies)
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Abstract

This study explores the determinants of initial coin offering (ICO) success, where success is defined as the amount of capital a project could raise. ICOs are a tool for startups in the blockchain ecosystem to raise early capital with relative ease. The market for ICOs has grown at a rapid pace since its start in 2013. We analyze a unique dataset of 278 projects that finished their ICOs by August 2017 to assess determinants of funding success that we derive from the crowdfunding and venture capital literature. Our results show that ICOs exhibit similarities to classical crowdfunding and venture capital markets. Specifically, we identify resemblances in determinants of funding success regarding human capital characteristics, business model quality, project elaboration, and social media activity. View Full-Text
Keywords: initial coin offering; blockchain; venture capital; crowdfunding initial coin offering; blockchain; venture capital; crowdfunding
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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Ante, L.; Sandner, P.; Fiedler, I. Blockchain-Based ICOs: Pure Hype or the Dawn of a New Era of Startup Financing? J. Risk Financial Manag. 2018, 11, 80.

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