Initial coin offerings, how do investors decide? A systematic literature review

  • Initial Coin Offerings (ICOs), are disrupting entrepreneurial financing by encouraging ventures to seek funds via generating and selling blockchain-based tokens to investors. Based on blockchain technology, this investor-investee relationship relies on a peer-to-peer basis and intermediaries are cut out of the funding process. The exclusion of intermediaries with the absence of regulation are causing high information asymmetries resulting in investor risks and increased opportunities for moral hazard and fraud. However, the total funding volume has increased remarkably since the first ICO. Current literature provides singular contributions on investor decisions to fund ICOs despite the risks, but is lacking an overview on ICO characteristics that influence investors’ decision-making. For this reason, the present research provides a systematic literature review, revealing six clusters of ICO characteristics that influence an investor’s decision-making process. In addition, the analysisInitial Coin Offerings (ICOs), are disrupting entrepreneurial financing by encouraging ventures to seek funds via generating and selling blockchain-based tokens to investors. Based on blockchain technology, this investor-investee relationship relies on a peer-to-peer basis and intermediaries are cut out of the funding process. The exclusion of intermediaries with the absence of regulation are causing high information asymmetries resulting in investor risks and increased opportunities for moral hazard and fraud. However, the total funding volume has increased remarkably since the first ICO. Current literature provides singular contributions on investor decisions to fund ICOs despite the risks, but is lacking an overview on ICO characteristics that influence investors’ decision-making. For this reason, the present research provides a systematic literature review, revealing six clusters of ICO characteristics that influence an investor’s decision-making process. In addition, the analysis revealed a significant literature gap on ex-ante motives for decisions on initial investments in ICOs.show moreshow less

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Metadaten
Author:Moritz BrucknerORCiDGND, Adrian Straub, Daniel VeitORCiDGND
URN:urn:nbn:de:bvb:384-opus4-832366
Frontdoor URLhttps://opus.bibliothek.uni-augsburg.de/opus4/83236
URL:https://aisel.aisnet.org/amcis2020/global_dev/global_dev/14/
ISBN:978-1-7336325-4-6OPAC
Parent Title (English):AMCIS 2020 Proceedings: Americas Conference on Information Systems, Sep 12-16, 2020, Salt Lake City, UT, USA
Publisher:AISeL
Place of publication:New York, NY
Editor:Bonnie Anderson, Jason Thatcher, Rayman Meservy, Kathy Chudoba, Kelly Fadel, Sue Brown
Type:Conference Proceeding
Language:English
Year of first Publication:2020
Publishing Institution:Universität Augsburg
Release Date:2021/02/05
First Page:14
Institutes:Wirtschaftswissenschaftliche Fakultät
Wirtschaftswissenschaftliche Fakultät / Institut für Betriebswirtschaftslehre
Wirtschaftswissenschaftliche Fakultät / Institut für Betriebswirtschaftslehre / Lehrstuhl für Information Systems und Management
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):Deutsches Urheberrecht