Initial coin offering as a funding source for projects

Initial Coin Offering and Platform Building∗

In an initial coin offering (ICO), a company (or an open-source project) raises funds by pre-selling access to a later product or service. We present a model that rationalizes the use of ICOs for launching peer-to-peer platforms: by adding dynamics to a platform launch, ICOs can 1) solve a coordination failure inherent in many platforms with network effects; and 2) harness the “wisdom of the cr...

A truthful Screening Mechanism for Improving Information Asymmetry in Initial Public Offering Transactions

A Managerial Motive for Initial Public Offering Underpricing

Crowdfunding. A new option for funding health projects.

INTRODUCTION Definition The funding of projects by raising many small amounts of money from a large number of people via the Internet through virtual platforms is known as crowdfunding. It is also known as crowd financing, equity crowdfunding or crowd-sourced fundraising. A t p r e s e n t , i t i s b e c o m i n g consolidated as a source to get funds to finance ventures without access to trad...

Regulation of Initial Coin Offerings∗

We analyze the regulation of initial coin offerings (ICOs), in which a company raises funds by pre-selling access to a later product or service. We start by presenting a model that rationalizes the use of ICOs for launching peer-to-peer platforms: by adding dynamics to a platform launch, ICOs can 1) solve a coordination failure problem inherent in many projects with network effects (strategic c...