Initial Coin Offerings : Early Evidence on the Role of Disclosure in the Unregulated Crypto Market *

@inproceedings{Bourveau2018InitialCO,
  title={Initial Coin Offerings : Early Evidence on the Role of Disclosure in the Unregulated Crypto Market *},
  author={Thomas Bourveau},
  year={2018}
}
We provide initial descriptive evidence on the emerging crypto capital market, and use this unique unregulated setting to examine the role of disclosure for capital market outcomes. We analyze a comprehensive global sample of more than 750 initial coin offerings (“ICOs”) with data from April 2014 to May 2018 and find that the ICO market has emerged as a significant financing channel with over $13 billion raised by a diverse set of issuers from more than 50 countries. We also find that the… Expand

Figures and Tables from this paper

1 PREDICTABILITY OF ICO SUCCESS AND RETURNS
Initial coin offerings (ICOs) provide a platform of tokens to the public as a way of crowdfunding, primarily to start-ups in cryptocurrencies. This empirical study is one of the first to analyse theExpand
Do Tokens Behave like Securities? An Anatomy of Initial Coin Offerings
We construct a comprehensive dataset of initial coin offerings (ICOs) to study the determinants of ICO success, post-ICO returns, volatility and liquidity, and evolution of ICO-backed-ventures’Expand
Initial Coin Offerings: What Rights Do Investors Have (If Any)?
This introduction reviews the growing literature on initial coin offerings (ICOs), summaries the articles included this special issue and also provides original evidence of the investor protection onExpand
The Information Content of ICO White Papers
White papers are likely the most important source of information provided to potential Initial Coin Offering (ICO) investors in platform-based ventures that may reduce information asymmetry betweenExpand
Initial Coin Offerings
This paper examines the market for initial coin offerings (ICOs). ICOs are smart contracts based on blockchain technology that are designed for entrepreneurs to raise external finance by issuingExpand
Initial Coin Offerings
TLDR
The determinants of market outcomes are explored and it is found that management quality and the ICO profile are positively correlated with the funding amount and returns, whereas highly visionary projects have a negative effect. Expand
Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales
Initial coin offerings (ICOs) have emerged as a new mechanism for entrepreneurial finance, with parallels to initial public offerings, venture capital, and pre-sale crowdfunding. In a sample of moreExpand
Historical Determinants of Fintech Development: Evidence from Initial Coin Offerings
This paper examines the impact of historical endowment on the Initial Coin Offering (ICO) market. Leveraging a sample of 1,617 hand collected ICOs over 2015-2019 and regressions models, we find thatExpand
An Essay on Minimum Disclosure Requirements for Cryptocurrency & Utility Token Issuers
Information asymmetries in financial markets are not a new phenomenon. In a recent poll conducted amongst 76 industry experts, a staggering 83% of participants stated they do not believe utilityExpand
A Descriptive Analysis of US Initial Coin Offerings
TLDR
US-based ICO tokens’ ratings and prices show contradictory characteristics, where blockchain infrastructure, healthcare, and marketplace domain tokens attracted lowest prices while being rated the highest, whereas the converse was true for energy tokens. Expand
...
1
2
3
...

References

SHOWING 1-10 OF 52 REFERENCES
Disclosure of Intended Use of Proceeds and Underpricing in Initial Public Offerings
We use the context of a company's initial public offering (IPO) of equity securities as a capital-markets setting to empirically study the economic consequences of endogenous disclosure. InExpand
Initial Coin Offerings
This paper examines the market for initial coin offerings (ICOs). ICOs are smart contracts based on blockchain technology that are designed for entrepreneurs to raise external finance by issuingExpand
The Role of Dissemination in Market Liquidity: Evidence from Firms' Use of Twitter
Firm disclosures often reach only a portion of investors, which results in information asymmetry among investors, and therefore lower market liquidity. This issue is particularly salient for firmsExpand
Digital Tulips? Returns to Investors in Initial Coin Offerings
Initial coin offerings (ICOs), sales of cryptocurrency tokens to the general public, have recently been used as a source of crowdfunding for startups in the technology and blockchain industries. WeExpand
Accounting Information , Disclosure , and the Cost of Capital
In this paper we examine whether and how accounting information about a firm manifests in its cost of capital, despite the forces of diversification. We build a model that is consistent with theExpand
Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales
Initial coin offerings (ICOs) have emerged as a new mechanism for entrepreneurial finance, with parallels to initial public offerings, venture capital, and pre-sale crowdfunding. In a sample of moreExpand
The Economic Consequences of Increased Disclosure
Economic theory suggests that a commitment by a firm to increased levels of disclosure should lower the information asymmetry component of the firm's cost of capital. But while the theory isExpand
A Re‐examination of Disclosure Level and the Expected Cost of Equity Capital
This paper examines the association between the cost of equity capital and levels of annual report and timely disclosure, and investor relations activities. We estimate the cost of equity capitalExpand
Why Do Businesses Go Crypto? An Empirical Analysis of Initial Coin Offerings
In this work, we provide the first comprehensive description of the Initial Coin Offering (ICO) phenomenon, which by the end of 2017 allowed startups around the world to raise more than $5.3 billion,Expand
INVESTMENT BANKING, REPUTATION, AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS*
This paper develops and tests two propositions. We demonstrate that there is a monotone relation between the (expected) underpricing of an initial public offering and the uncertainty of investorsExpand
...
1
2
3
4
5
...