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ICO Analysts

Author

Listed:
  • Andreas Barth

    (Goethe University Frankfurt - Department of Finance)

  • Valerie Laturnus

    (Goethe University Frankfurt - Department of Finance)

  • Sasan Mansouri

    (Goethe University Frankfurt - Department of Finance)

  • Alexander F. Wagner

    (University of Zurich - Department of Banking and Finance; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Swiss Finance Institute)

Abstract

Freelancing human experts play an important role in Initial Coin Offerings (ICOs). Expert ratings partially reflect the reciprocal network of ICO members and analysts. Ratings predict ICO success, but highly imperfectly. Favorably rated ICOs tend to fail when more ratings reciprocate prior ratings. Failure despite strong ratings is also frequent when analysts have a history of optimism, and when reviews strike a particulary positive tone. These findings help illuminate the workings of ICOs for funding new ventures, and the rich data also yield insights pertinent to the literature on equity analysts and rating agencies.

Suggested Citation

  • Andreas Barth & Valerie Laturnus & Sasan Mansouri & Alexander F. Wagner, 2021. "ICO Analysts," Swiss Finance Institute Research Paper Series 21-26, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp2126
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    More about this item

    Keywords

    Analysts; Asymmetric Information; FinTech; Initial Coin Offering (ICO);
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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