The power of a name: Exploring the relationship between ICO name fluency and investor decision making

Feilian Xia, James Thewissen, Prabal Shrestha and Shuo Yan

International Review of Financial Analysis, 2024, vol. 93, issue C

Abstract: This study examines the impact of the fluency of Initial Coin Offering (ICO) project names on fundraising and post-ICO performance. Analyzing 8,878 ICOs from July 2012 to July 2021, we find a robust and positive correlation between name fluency (e.g., projects with succinct and English-like names) and fundraising success. Moreover, we find that this relationship is heightened for ICOs with popular names and that it influences an ICO’s performance over time by increasing listing likelihood, shortening the listing time, and prolonging survival. Overall, the results of this paper align with psychological insights suggesting that fluency in stimuli enhances familiarity and memorability, which therefore, enables investors to make heuristic-based decision amidst the informationally constrained ICO landscape.

Keywords: Initial coin offering; Name; Name fluency; Heuristics (search for similar items in EconPapers)
JEL-codes: D80 G15 L26 M13 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000747

DOI: 10.1016/j.irfa.2024.103142

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