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The power of a name: Exploring the relationship between ICO name fluency and investor decision making

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  • Xia, Feilian
  • Thewissen, James
  • Shrestha, Prabal
  • Yan, Shuo

Abstract

This study examines the impact of the fluency of Initial Coin Offering (ICO) project names on fundraising and post-ICO performance. Analyzing 8,878 ICOs from July 2012 to July 2021, we find a robust and positive correlation between name fluency (e.g., projects with succinct and English-like names) and fundraising success. Moreover, we find that this relationship is heightened for ICOs with popular names and that it influences an ICO’s performance over time by increasing listing likelihood, shortening the listing time, and prolonging survival. Overall, the results of this paper align with psychological insights suggesting that fluency in stimuli enhances familiarity and memorability, which therefore, enables investors to make heuristic-based decision amidst the informationally constrained ICO landscape.

Suggested Citation

  • Xia, Feilian & Thewissen, James & Shrestha, Prabal & Yan, Shuo, 2024. "The power of a name: Exploring the relationship between ICO name fluency and investor decision making," International Review of Financial Analysis, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000747
    DOI: 10.1016/j.irfa.2024.103142
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    More about this item

    Keywords

    Initial coin offering; Name; Name fluency; Heuristics;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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