Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals

Thies, Ferdinand; Wallbach, Sören; Wessel, Michael; Besler, Markus; Benlian, Alexander (2021). Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals Electronic Markets Springer 10.1007/s12525-021-00460-9

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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.

Item Type:

Journal Article (Original Article)

Division/Institute:

Business School > Institute for Digital Technology Management
Business School

Name:

Thies, Ferdinand0000-0003-3379-302X;
Wallbach, Sören;
Wessel, Michael;
Besler, Markus and
Benlian, Alexander

ISSN:

1019-6781

Publisher:

Springer

Language:

English

Submitter:

Ferdinand Thies

Date Deposited:

22 Oct 2021 10:00

Last Modified:

22 Oct 2021 10:00

Publisher DOI:

10.1007/s12525-021-00460-9

Uncontrolled Keywords:

Initial coin offering . Cryptocurrencies . Signaling theory . Fundraising

ARBOR DOI:

10.24451/arbor.15513

URI:

https://arbor.bfh.ch/id/eprint/15513

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