Underpricing in the Cryptocurrency World: Evidence from Initial Coin Offerings

  title={Underpricing in the Cryptocurrency World: Evidence from Initial Coin Offerings},
  author={Thijn Felix},
  journal={ERN: Initial Public Offerings (IPOs) (Topic)},
  • Thijn Felix
  • Published 1 June 2018
  • Economics
  • ERN: Initial Public Offerings (IPOs) (Topic)
Purpose The purpose of this paper is to analyze underpricing in initial coin offerings (ICO). It bridges the gap between findings in initial public offering (IPO) literature and empirical results from ICOs. Design/methodology/approach The sample set consists of 279 ICOs between April 2013 and January 2018. A regression analysis is performed with data from the ICOs. Findings The results show an average level of underpricing of ICOs of 123 percent in the USA and 97 percent in the other… 
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