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

Ingo Gächter and Martin Gächter

Finance Research Letters, 2021, vol. 40, issue C

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.

Keywords: ICO; Crowdfunding; Cryptocurrency; Success factors; Timing; Blockchain; DLT; Fundraising; SME; FinTech (search for similar items in EconPapers)
JEL-codes: D83 G32 G41 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:40:y:2021:i:c:s1544612320300866

DOI: 10.1016/j.frl.2020.101715

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