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Success factors in ICOs: Individual firm characteristics or lucky timing?

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  • Gächter, Ingo
  • Gächter, Martin

Abstract

This study highlights the time dimension as a key success factor for fundraising with Initial Coin Offerings (ICOs). Previous literature suggests various company- or ICO-specific determinants for a successful ICO, such as a professional white paper helping to establish trust among investors. Alternatively, our empirical results suggest that “lucky timing” is the crucial factor in explaining ICO success in terms of total amount raised. Our additional analysis considering Google search activity shows that the highlighted time variation in ICO success can be explained to a large degree by the respective public “hype” regarding ICOs.

Suggested Citation

  • Gächter, Ingo & Gächter, Martin, 2021. "Success factors in ICOs: Individual firm characteristics or lucky timing?," Finance Research Letters, Elsevier, vol. 40(C).
    • Handle: RePEc:eee:finlet:v:40:y:2021:i:c:s1544612320300866
    DOI: 10.1016/j.frl.2020.101715
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    References listed on IDEAS

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    More about this item

    Keywords

    ICO; Crowdfunding; Cryptocurrency; Success factors; Timing; Blockchain; DLT; Fundraising; SME; FinTech;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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