Academic Journal
Token-Based Crowdfunding: Investor Choice and the Optimal Timing of Initial Coin Offerings
| العنوان: | Token-Based Crowdfunding: Investor Choice and the Optimal Timing of Initial Coin Offerings |
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| المؤلفون: | Drobetz, Wolfgang, Hornuf, Lars, Momtaz, Paul P., Schermann, Niclas |
| المصدر: | Entrepreneurship Theory and Practice ; volume 49, issue 1, page 232-282 ; ISSN 1042-2587 1540-6520 |
| بيانات النشر: | SAGE Publications |
| سنة النشر: | 2024 |
| الوصف: | This article examines the operating and financial performance of venture firms conducting initial coin offerings (ICOs) with different types of investors and at different points along a venture’s life-cycle. Relative to purely crowdfunded ICO ventures, institutional investor-backed ICO ventures exhibit weaker operating performance and fail earlier. However, conditional on survival, these ventures financially outperform their peers that do not receive institutional investor support. The diverging effects of investor backing on financial and operating performance are consistent with our theory of “certification exploitation” through a new form of a pump-and-dump scheme. Institutional investors exploit their reputation to drive up ICO valuations and quickly exit the venture post-ICO, with the difference in pre- versus post-certification token prices being their exploitation profit in liquid markets for startups. Our findings further indicate that there is an inverted U-shaped relationship between the financial success of an ICO and the timing along a venture’s life-cycle, with the product piloting phase representing the pivotal point. JEL Codes: G24, G32, K22, L26 |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | English |
| DOI: | 10.1177/10422587241261625 |
| الاتاحة: | https://doi.org/10.1177/10422587241261625 https://journals.sagepub.com/doi/pdf/10.1177/10422587241261625 https://journals.sagepub.com/doi/full-xml/10.1177/10422587241261625 |
| Rights: | https://creativecommons.org/licenses/by/4.0/ |
| رقم الانضمام: | edsbas.D08D92A |
| قاعدة البيانات: | BASE |
| DOI: | 10.1177/10422587241261625 |
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