Ruediger Fahlenbrach and
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Marc Frattaroli: Swiss Finance Institute @ EPFL
Financial Markets and Portfolio Management, 2021, vol. 35, issue 1, No 1, 59 pages
Abstract We conduct a detailed analysis of investors in successful initial coin offerings (ICOs). The average ICO has 4700 contributors. The median participant contributes small amounts and many investors sell their tokens before the underlying product is developed. Large presale investors obtain tokens at a discount and flip part of their allocation shortly after the ICO. ICO contributors lack the protections traditionally afforded to investors in early-stage financing. Nevertheless, returns 9 months after the ICO are positive on average, driven mostly by an increase in the value of the Ethereum cryptocurrency.
Keywords: Initial coin offering; FinTech; Individual investors (search for similar items in EconPapers)
JEL-codes: G20 G24 G32 O33 (search for similar items in EconPapers)
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Working Paper: ICO Investors (2019)
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