The Market Cycles of ICOs, Bitcoin, and Ether

Christian Masiak, Joern Block, Tobias Masiak, Matthias Neuenkirch and Katja N. Pielen

No 2018-04, Research Papers in Economics from University of Trier, Department of Economics

Abstract: We apply time series analysis to investigate the market cycles of Initial Coin Offerings (ICOs) as well as bitcoin and Ether. Our results show that shocks to ICO volumes are persistent and that shocks in bitcoin and Ether prices have a substantial and positive effect on these volumes – with the effect of bitcoin shocks being of shorter duration than that of Ether shocks. Moreover, higher ICO volumes cause lower bitcoin and Ether prices. Finally, bitcoin shocks positively influence Ether but not the other way round. Our study has implications for financial practice, in particular for cryptocurrency investors and entrepreneurial firms conducting ICOs.

Keywords: Blockchain; cryptocurrency; entrepreneurial finance; initial coin offering; bitcoin; Ether; time series analysis (search for similar items in EconPapers)
JEL-codes: E22 G11 O16 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2018
New Economics Papers: this item is included in nep-knm, nep-mac, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:trr:wpaper:201804

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