The FINANCIAL -- Given explosive growth in the ICO market, new research highlights the value of disclosure in this global market.
With around US$13 billion (£10.1 billion) raised through initial coin offerings (ICOs) between April 2014 and May 2018, across 50+ countries and by more than 650 issuers, the question of investor protection is now urgent.
The global market continues to grow, typically with more than 100 new ICOs a month. However, some ICOs experience falls of -75% or more within a few months of the issue date, according to LBS.
New research carried out by Emmanuel De George of London Business School, together with Thomas Bourveau of Columbia Business School, Atif Ellahie from the University of Utah, and Daniele Macciocchi, also of the University of Utah, demonstrates the value of disclosure in this fast-growing global unregulated market.
The research team analysed a global sample of 776 ICOs that occurred from April 2014 to May 2018, which formed the basis for their study. 659 of these ICOs completed.
Based on this global study of 776 ICOs, the team highlight characteristics of successful ICOs which potential investors and issuers should bear in mind; their findings should also provide evidence to inform the ongoing regulatory debate on crypto tokens.