IDEAS home Printed from https://ideas.repec.org/a/taf/titdxx/v27y2021i3p561-578.html
   My bibliography  Save this article

Collecting money through blockchain technologies: first insights on the determinants of the return on Initial Coin Offerings

Author

Listed:
  • Francesco Cappa
  • Michele Pinelli

Abstract

Initial Coin Offerings (ICOs), i.e. the initial offer of a crypto-token, represent an increasingly popular method to raise money. However, the determinants of ICOs’ returns for investors are still overlooked. Following this cue, the empirical outcomes of our study based on crypto-tokens issued between 2017 and 2018 evidence the main determinants of ICOs’ returns: first, crypto-tokens returns are positively associated to Ether’s returns; second, ICO price is negatively associated to later price increases; third, crypto-tokens returns are lower when they are offered in presale; finally, the more a crypto-token price increases between the ICO and the listing-date on the secondary-market and the more its price rises in the following month. In so doing, we contribute to a better understanding of the ICO phenomenon and highlight which aspects may benefit fund raising, which are relevant for the establishment of new startups and more broadly for the economic development of a country.

Suggested Citation

  • Francesco Cappa & Michele Pinelli, 2021. "Collecting money through blockchain technologies: first insights on the determinants of the return on Initial Coin Offerings," Information Technology for Development, Taylor & Francis Journals, vol. 27(3), pages 561-578, July.
    • Handle: RePEc:taf:titdxx:v:27:y:2021:i:3:p:561-578
    DOI: 10.1080/02681102.2020.1801564
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02681102.2020.1801564
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02681102.2020.1801564?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muneer M. Alshater & Mayank Joshipura & Rim El Khoury & Nohade Nasrallah, 2023. "Initial Coin Offerings: a Hybrid Empirical Review," Small Business Economics, Springer, vol. 61(3), pages 891-908, October.
    2. Sun, Helin & Cappa, Francesco & Zhu, Jia & Peruffo, Enzo, 2023. "The effect of CEO social capital, CEO duality and state-ownership on corporate innovation," International Review of Financial Analysis, Elsevier, vol. 87(C).
    3. Viviana D'Angelo & Francesco Cappa & Enzo Peruffo, 2023. "Walking the tightrope: Circular economy breadth and firm economic performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1869-1882, July.
    4. Fasano, Francesco & Rocca, Maurizio La & Cariola, Alfio & Passarelli, Mariacarmela, 2023. "Banking relationship and research spin-offs’ life cycle: The Italian experience," Research in International Business and Finance, Elsevier, vol. 65(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:titdxx:v:27:y:2021:i:3:p:561-578. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/titd20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.