Cryptocurrency
Research Outcome: Lessons Learned From 1600+ICO Funding Rounds
As reported at Forbes, “While reviewing more than 1600 English speaking Whitepapers on Initial Coin Offering (ICO) campaigns that took place between January 2017 and December 2018, researchers from two US-based universities investigated various signals that might have impacted the outcome of the fundraising process. “For those unfamiliar with Initial Coin Offerings, they represent a […]
As reported at Forbes, “While reviewing more than 1600 English speaking Whitepapers on Initial Coin Offering (ICO) campaigns that took place between January 2017 and December 2018, researchers from two US-based universities investigated various signals that might have impacted the outcome of the fundraising process.
“For those unfamiliar with Initial Coin Offerings, they represent a crowd-based sale of so-called ‘Tokens’. It has been an often disputed mechanism to raise external funding while advertising an emission of crypto-currency based Tokens to investors that have been distributed on the Blockchain. ICOs remain risky ventures and it is notoriously hard to identify those that have any “fundamental” value. It is then hardly surprising that less than 40% manage to obtain any funding.
“According to the study, the key to identifying promising ICOs lies in the language. ICO project owners, who focused on a comprehensive description of the technological core behind their Tokens were 20% more likely to obtain funding as well as 40% more likely to list their tokens on CoinMarketCap, one of the leading price-tracking website for crypto assets. Last but not least, these ICOs saw their prices increase 24% more than average over 300 days after being listed…”