Title: A comparative study in fintech on the financial performance of ICO versus IEO and IDO during a shifting macroeconomic environment

Authors: Simona Mihai-Yiannaki; Georgios Trypidakis

Addresses: Department of Accounting, Economics, and Finance, European University Cyprus, 6 Diogenes Street, 2404 Engomi, Nicosia, Cyprus ' Department of Accounting, Economics, and Finance, European University Cyprus, 6 Diogenes Street, 2404 Engomi, Nicosia, Cyprus

Abstract: The study examines ICOs in comparison to alternative models, IEOs and IDOs and analyses their initial price returns during positive and downtrend macroeconomic conditions and market sentiments. We performed a cross sectional multiple case study analysis of blockchain financing models and launchpads, identified the differences and overall performance with focus on ROI% and risk adjusted return (Sharpe ratio). Results confirm that choosing a launchpad influences returns for the project and initial investors, since launchpad procedures are not standardised, their average ROI has fluctuated during a macro-economic shift in the markets, but not to the level of the change in the risk adjusted return. Both investors and issuers can leverage these insights to make data informed decision about the potential impact of future macroeconomic conditions on the token's returns of blockchain crowdfunding models and understand which fits their risk appetite. The study is the only comparison of different ICO models during increase crypto adoption.

Keywords: initial coin offering; ICO; initial exchange offering; IEO; initial DEX offering; IDO; cryptocurrencies; crowdfunding; decentralised finance; fintech; online entrepreneurship; launchpad.

DOI: 10.1504/GBER.2025.148360

Global Business and Economics Review, 2025 Vol.33 No.3/4, pp.253 - 281

Accepted: 28 Oct 2024
Published online: 02 Sep 2025 *

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