An Investigation of Factors Determining the Token Value in the Blockchain-based Early Funding Mechanism

Abstract

The research employs WLS Regression for examining the main determinants of the ICO pro fi tability in the crowd-funding stage. The variables are divided into three main categories: fi nancial and technological aspects, and the ICO characteristics, with the aim of verifying which parts most in fl uence the funds raised. The results imply that fi nancial and technological aspects might indeed have an impact on the ICO pro fi tability. The key factors covered are the open-source code availability and the preset hard cap. Overall, the econometric analysis discloses that the amount raised during the ICO is not affected by the availability of a white paper and pre-sales, even though some researchers argue differently.