Title: Blockchain ventures and initial coin offerings

Authors: Youngkeun Choi; Byoungkwan Kim; Seungyong Lee

Addresses: Division of Business Administration, College of Business, Sangmyung University, 20-Hongjimun 2-gil, Jongno-gu, Seoul, 03016, Korea ' Ernest Venture, 12th, 645beon-gil, 8th Floor, Gyeonggi Creative Economy Innovation Center, Daewangpangyo-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, 13487, Korea ' Yonsei Business Research Institute, Yonsei University, 50, Yonsei-ro, Seodaemun-gu, Seoul, 03722, Korea

Abstract: This study examined how blockchain ventures can maximise wealth through Initial coin offerings (ICOs). Based on the signal theory, this study investigated the effect of the human capital of the founders and the endorsement of third parties on the performance of ICO in the blockchain ventures. For this, this study targets blockchain ventures listed on Binance, the world's no. 1 cryptocurrency exchange. Among these blockchain ventures, 514 companies were selected in order of the largest market capitalisation of their cryptocurrency. This study analysed the whitepaper issued by 514 companies for ICO and built a database by coding the variables necessary for this study. In the results, first, when the founder in a blockchain venture is from a prestigious university, it has a positive impact on ICO performance. Second, if a blockchain-based venture is invested by institutional investors, it has a positive impact on ICO performance.

Keywords: blockchain; ICO; initial coin offering; ventures; cryptocurrency; signalling effect theory; human capitals; entrepreneurs; market capitalisation; institutional investors.

DOI: 10.1504/IJTE.2020.108092

International Journal of Technoentrepreneurship, 2020 Vol.4 No.1, pp.32 - 46

Received: 09 Jan 2020
Accepted: 10 Feb 2020
Published online: 02 Jul 2020 *

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