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research article

ICO investors

Fahlenbrach, Rudiger  
•
Frattaroli, Marc  
2021
Financial Markets And Portfolio Management

We conduct a detailed analysis of investors in successful initial coin offerings (ICOs). The average ICO has 4700 contributors. The median participant contributes small amounts and many investors sell their tokens before the underlying product is developed. Large presale investors obtain tokens at a discount and flip part of their allocation shortly after the ICO. ICO contributors lack the protections traditionally afforded to investors in early-stage financing. Nevertheless, returns 9 months after the ICO are positive on average, driven mostly by an increase in the value of the Ethereum cryptocurrency.

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Type
research article
DOI
10.1007/s11408-020-00366-0
Web of Science ID

WOS:000590130100001

Author(s)
Fahlenbrach, Rudiger  
Frattaroli, Marc  
Date Issued

2021

Published in
Financial Markets And Portfolio Management
Volume

35

Start page

1

End page

59

Subjects

Business, Finance

•

Business & Economics

•

initial coin offering

•

fintech

•

individual investors

•

market

•

offerings

Note

This is an Open Access article under the terms of the Creative Commons Attribution License

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
SFI-RF  
SFI-GE  
Available on Infoscience
December 2, 2020
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/173763
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