JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Predictability of ICO Success and Returns
Author(s): Tobias Dean, Dulani Jayasuriya Daluwathumullagamage, Alastair Marsden
Citation: Tobias Dean, Dulani Jayasuriya Daluwathumullagamage, Alastair Marsden, (2020) "Predictability of ICO Success and Returns," Journal of Applied Business and Economics, Vol. 22, Iss.13, pp. 20-36
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Initial coin offerings (ICOs) provide a platform to issue tokens to the public. This study analyses the determinants of ICO success and listing day returns using a dataset of 341 executed ICOs. Funds raised under an ICO are negatively related to target funding size and positively related to Cryptocurrency usage and ICO quality. ICO listing day returns are negatively related to the amount raised, the time period of the offer and time delay to listing. In contrast, ICO listing day returns are positively related to Blockchain usage, ICO quality and the ICO success to raise the target level of funds.