The term initial coin offering (ICO) seems to be the new hype of the crypto community. It offers never before seen possibilities for consumers and companies but suffers from draw backs like a lack of regulation.
In 2017, an impressive number of 4.6 billion USD was invested in ICOs. Consequently, ICOs are of large public interest. Therefore, it is interesting to determine what influences the behaviour of investors.
Accordingly, the aim of this thesis is to investigate how general investment factors change in the disruptive environment of ICOs. Hence, in this context, relevant general investment factor - such as reputation, media coverage, corporate social responsibility, risk and other factors including macroeconomic situation, past performance and technological uncertainty - are considered.
The results show that, due to a lack of reliable measures for quantitative factors, qualitative investment factors gain greater importance for ICOs. Furthermore, the highest importance was assigned to media coverage, which is important for investors who want to overcome the high information asymmetries that exist for ICOs.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- ICO as an emerging investment trend?
- Theoretical approach to develop general investment factors for ICOS
- Theoretical Foundation
- The phenomenon of ICOs as a new investment form
- Blockchain the underlying technology of ICOs.
- How do general investment factors change in the context of ICOs?
- Functioning of cryptocurrency/tokens
- Wallet the storage for cryptocurrencies
- Whitepaper the company masterplan.
- Functioning of ICOs in detail
- Comparing ICOs to other financing forms: Crowdfunding, VC and IPO
- Discussion of the advantages of ICOS
- Discussion of the disadvantages of ICOs
- Introducing relevant management theories
- How can agency theory help ICO investors?
- Why is adverse selection theory relevant for ICOs?
- Analysing general investment factors in the specific context of ICOS
- What is the role of reputation in context of ICOs?
- Importance of corporate social responsibility for ICOs?
- What is the influence of media coverage on the investment decision?
- How important is risk for an investment in ICOs?
- Other factors that are important for ICO investment
- Which impact has past performance for ICOs?
- Can the macroeconomic situation influence investments in ICOs?
- How does technological uncertainty influence the investment in ICOs?
- Discussion
- Extending existing investment-decisions literature into the context of ICOS
- Helping managers to align ICOs to the investors' preferences
- ICO as an emerging field that needs more research
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This bachelor thesis aims to investigate the influence of general investment factors on investor behavior in the context of Initial Coin Offerings (ICOs). The thesis explores how these factors, which typically impact investment decisions in traditional markets, adapt and gain significance in the disruptive environment of ICOs.
- The emergence and functioning of ICOs as a new investment trend
- The impact of general investment factors on ICO investment decisions
- The role of reputation, corporate social responsibility, and media coverage in the ICO context
- The importance of risk, past performance, and technological uncertainty for ICO investors
- The implications of these findings for managers and future research on ICOs
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of ICOs as a new investment trend and outlines the thesis's objective to investigate how general investment factors change in the context of ICOs.
- Theoretical Foundation: This chapter provides a detailed explanation of ICOs, including their underlying technology, functioning, and comparison with other financing forms like crowdfunding, VC, and IPO. It also introduces relevant management theories, such as agency theory and adverse selection theory, to understand investor behavior in this context.
- Analysing General Investment Factors in the Specific Context of ICOs: This chapter examines various investment factors, such as reputation, corporate social responsibility, media coverage, risk, past performance, macroeconomic situation, and technological uncertainty, and analyzes their significance in influencing ICO investment decisions.
- Discussion: This chapter extends the existing investment-decisions literature to the context of ICOs, highlights implications for managers seeking to align ICOs with investor preferences, and emphasizes the need for further research in this emerging field.
Schlüsselwörter (Keywords)
The thesis explores the landscape of Initial Coin Offerings (ICOs) by examining general investment factors, such as reputation, corporate social responsibility, media coverage, risk, and technological uncertainty, in the context of this new investment trend. The work also considers the implications of these factors for investors and managers, emphasizing the need for further research in this rapidly evolving area of finance and technology.
- Quote paper
- Anonym (Author), 2018, Initial Coin Offerings as a new way to raise money? Investigating risks and opportunities from a consumer perspective, Munich, GRIN Verlag, https://www.grin.com/document/541441
