Analysis Of Influencing Factors Of ICO Success

Initial coin offering(ICO),generally speaking,ICO refers to the issuance of a project 's unique encrypted token on a blockchain platform by a blockchain startup project,which investors buy using designated digital currencies(such as Bitcoin,Ether)The way of project tokens is the act of crowdfunding for the project.This article systematically sorts out and summarizes the relevant literature on ICO research in the digital currency field at home and abroad.First,it defines related concepts and distinguishes the differences between IPO,crowdfunding and ICO;Research status,summed up the research topics in the field of ICO,combed the factors affecting ICO success and related conclusions;third,pointed out the shortcomings of the current research.In short,ICO is a double-edged sword,which can bring sufficient funds for high-quality ICO projects and can also be used by fake ICOs.Based on the theory of signal transmission,this paper integrates the signal sender,signal transmission environment and signal characteristics,and selects five relevant variables,which are the quality of the team,technical capabilities,the degree of information disclosure,the availability of venture capital and the legal framework for digital business models Adaptability,in-depth study of the complex causal relationship between the signal transmission process and the market players.Evaluate the success of ICO from two aspects,short-term and long-term,measure the success of short-term ICO by ICO financing success rate,and measure the long-term ICO success by ICO underpricing rate.Finally,the fuzzy set qualitative comparative analysis method(FSQCA)is used to verify the research hypothesis.Through empirical research and analysis,this paper believes that the short-term success and long-term success of ICO do not depend on the independent role of a single element,but the joint effect of multiple related factors such as the signal issuer,signal and signal transmission environment.Technical ICOs with high technical capabilities as the core feature and team quality,economic environment and legal environment as auxiliary conditions are easier to achieve success.When the signal transmission environment is relatively friendly,that is,the economic environment with easy access to venture capital and the law adapts quickly to the digital business model,the lack of experienced teams and technical capabilities,even if the information disclosure will lead to ICO bias failure.There is a serious information asymmetry in ICO.In the long run,with the increasing number of public signals,the effect of information asymmetry on the underpricing rate is not obvious.From the perspective of the long-term performance of ICOs,ICOs focused on improving technical capabilities can achieve higher returns.Technology is the most important factor in achieving ICO success,followed by the degree of information disclosure.In view of the information asymmetry and ICO chaos in ICO,the following suggestions are given to the countries and regions that support cryptocurrency and ICO from the perspectives of government institutions and investors: This paper puts forward the following three measures: establishing information disclosure system to reduce information asymmetry;building block chain technology patent system to protect intellectual property rights;investors to enhance risk judgment ability,identify the characteristics of the external environment.