Factors Affecting Success of Initial Coin Offerings (ICOs)

Initial Coin Offering (ICO) has been popular amongst entrepreneurs interested in the field of blockchain as a prime way of collecting investment for their ventures. Hundreds of ICOs are launched every year based on different blockchain technologies trying to contribute several different ideas in the...

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Main Author: Shrestha, Govinda
Other Authors: Informaatioteknologian tiedekunta, Faculty of Information Technology, Informaatioteknologia, Information Technology, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2022
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/80029
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author Shrestha, Govinda
author2 Informaatioteknologian tiedekunta Faculty of Information Technology Informaatioteknologia Information Technology Jyväskylän yliopisto University of Jyväskylä
author_facet Shrestha, Govinda Informaatioteknologian tiedekunta Faculty of Information Technology Informaatioteknologia Information Technology Jyväskylän yliopisto University of Jyväskylä Shrestha, Govinda Informaatioteknologian tiedekunta Faculty of Information Technology Informaatioteknologia Information Technology Jyväskylän yliopisto University of Jyväskylä
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description Initial Coin Offering (ICO) has been popular amongst entrepreneurs interested in the field of blockchain as a prime way of collecting investment for their ventures. Hundreds of ICOs are launched every year based on different blockchain technologies trying to contribute several different ideas in the field of blockchain industry however, only few of them are able to collect minimum investment required, often termed as Softcap, for starting their project while most of them fail. Likewise, among the successful ones very few are able to reach their maximum target, often termed as Hardcap. The success of an ICO is affected by various factors. The objective of this thesis is to test existence of relationship between ratings provided by experts based on team, product, vision and social activities of ICO and the success of the ICO, considering expert ratings to be one of the success factors. For the purpose of thesis, the ratings provided by experts on ICOs based on ICO characteristics and social activities (independent variables) were collected from different ICO listing websites along with the amount collected by them (dependent variables). Different regression models implemented in thesis established the fact that there exists a statistically significant association between the aggregate ratings of the ICOs and the percentage of amount collected by them, and thus, the aggregate ratings available in ICO listings sites can be used as an indicator for ICO success. This thesis concludes that ICO entrepreneurs prior conducting an ICO should have a well-organized qualified team with expertise and experienced in relevant field with clear vision and strategy and should be focused in proper product development that is actually able to solve real-world problems. Also, they should not hesitate to provide information about themselves and their project in detail in their whitepapers and provide regular updates about their project in different social media platform. Likewise, from investors point of view, based on the findings of the thesis, it is advised that it would be wise to go through the experts’ ratings for ICOs available in different ICO listing platform however it would be profitable to gather as much information as possible about any ICO prior the investment and not rely on experts’ rating completely.
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Hundreds of ICOs are launched every year based on different blockchain\ntechnologies trying to contribute several different ideas in the field of blockchain industry however, only few of them are able to collect minimum investment required, often termed as Softcap, for starting their project while most of\nthem fail. Likewise, among the successful ones very few are able to reach their\nmaximum target, often termed as Hardcap. The success of an ICO is affected by\nvarious factors. The objective of this thesis is to test existence of relationship\nbetween ratings provided by experts based on team, product, vision and social\nactivities of ICO and the success of the ICO, considering expert ratings to be one\nof the success factors.\nFor the purpose of thesis, the ratings provided by experts on ICOs based on\nICO characteristics and social activities (independent variables) were collected\nfrom different ICO listing websites along with the amount collected by them\n(dependent variables). Different regression models implemented in thesis established the fact that there exists a statistically significant association between the\naggregate ratings of the ICOs and the percentage of amount collected by them,\nand thus, the aggregate ratings available in ICO listings sites can be used as an\nindicator for ICO success. This thesis concludes that ICO entrepreneurs prior\nconducting an ICO should have a well-organized qualified team with expertise\nand experienced in relevant field with clear vision and strategy and should be\nfocused in proper product development that is actually able to solve real-world\nproblems. Also, they should not hesitate to provide information about themselves and their project in detail in their whitepapers and provide regular updates about their project in different social media platform. 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spellingShingle Shrestha, Govinda Factors Affecting Success of Initial Coin Offerings (ICOs) cryptocurrency Experts ratings ICO blockchain Bitcoin Ethereum Pre-ICO Post-ICO Hardcap Softcap white paper ERC20 token sales distributed ledger technology DLT Tietojärjestelmätiede Information Systems Science 601 lohkoketjut menestystekijät menestyminen poletit sijoittajat yritykset sosiaalinen media blockchains success factors success tokens investors enterprises social media
title Factors Affecting Success of Initial Coin Offerings (ICOs)
title_full Factors Affecting Success of Initial Coin Offerings (ICOs)
title_fullStr Factors Affecting Success of Initial Coin Offerings (ICOs) Factors Affecting Success of Initial Coin Offerings (ICOs)
title_full_unstemmed Factors Affecting Success of Initial Coin Offerings (ICOs) Factors Affecting Success of Initial Coin Offerings (ICOs)
title_short Factors Affecting Success of Initial Coin Offerings (ICOs)
title_sort factors affecting success of initial coin offerings icos
title_txtP Factors Affecting Success of Initial Coin Offerings (ICOs)
topic cryptocurrency Experts ratings ICO blockchain Bitcoin Ethereum Pre-ICO Post-ICO Hardcap Softcap white paper ERC20 token sales distributed ledger technology DLT Tietojärjestelmätiede Information Systems Science 601 lohkoketjut menestystekijät menestyminen poletit sijoittajat yritykset sosiaalinen media blockchains success factors success tokens investors enterprises social media
topic_facet 601 Bitcoin DLT ERC20 Ethereum Experts ratings Hardcap ICO Information Systems Science Post-ICO Pre-ICO Softcap Tietojärjestelmätiede blockchain blockchains cryptocurrency distributed ledger technology enterprises investors lohkoketjut menestyminen menestystekijät poletit sijoittajat social media sosiaalinen media success success factors token sales tokens white paper yritykset
url https://jyx.jyu.fi/handle/123456789/80029 http://www.urn.fi/URN:NBN:fi:jyu-202203011747
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