Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287006 
Year of Publication: 
2021
Citation: 
[Journal:] Electronic Markets [ISSN:] 1422-8890 [Volume:] 32 [Issue:] 3 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2021 [Pages:] 1691-1705
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
Initial coin offerings (ICOs) have recently emerged as a new financing instrument for entrepreneurial ventures, spurring economic and academic interest. Nevertheless, the impact of exogenous and endogenous signals on the performance of ICOs as well as the effects of the cryptocurrency hype and subsequent downfall of Bitcoin between 2016 and 2019 remain underexplored. We applied ordinary least squares (OLS) regressions based on a dataset containing 1597 ICOs that covers almost 2.5 years. The results show that exogenous and endogenous signals have a significant effect on the funds raised in ICOs. We also find that the Bitcoin price heavily drives the performance of ICOs. However, this hype effect is moderated, as high-quality ICOs are not pegged to these price developments. Revealing the interplay between hypes and signals in the ICO's asset class should broaden the discussion of this emerging digital phenomenon.
Subjects: 
Initial coin offering
Cryptocurrencies
Signaling theory
Fundraising
JEL: 
G41
D81
L15
L86
M13
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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