The behavior of blockchain ventures on Twitter as a determinant for funding success

Simon Albrecht (), Bernhard Lutz and Dirk Neumann
Additional contact information
Simon Albrecht: University of Freiburg
Bernhard Lutz: University of Freiburg
Dirk Neumann: University of Freiburg

Electronic Markets, 2020, vol. 30, issue 2, No 6, 257 pages

Abstract: Abstract Blockchain ventures rely on a distributed funding instrument called initial coin offering (ICO). Since ICOs are not regulated, potential investors face information asymmetries and decision-making under uncertainty. In this study, we investigate whether blockchain ventures can effectively reduce these information asymmetries by utilizing signaling mechanisms on Twitter and how the resulting effects differ from those in conventional market environments. Based on a corpus of 144,492 tweets from 522 ventures, we provide empirical evidence that positive language and a high, yet steady level of interactivity with the community are linked to higher funding, while frequent stressing of time frames has the opposite effect. To the best of our knowledge, this presents the first study to analyze how the textual content of tweets can be linked to the success of blockchain ventures.

Keywords: Blockchain; Initial coin offering; Twitter; Sentiment; Social media (search for similar items in EconPapers)
JEL-codes: D81 G41 L26 L86 M13 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://link.springer.com/10.1007/s12525-019-00371-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:elmark:v:30:y:2020:i:2:d:10.1007_s12525-019-00371-w

Ordering information: This journal article can be ordered from
http://www.springer. ... ystems/journal/12525

DOI: 10.1007/s12525-019-00371-w

Access Statistics for this article

Electronic Markets is currently edited by Rainer Alt and Hans-Dieter Zimmermann

More articles in Electronic Markets from Springer, IIM University of St. Gallen
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().