Capital market based on blockchain technology and the efficient market hypothesis: theoretical and conceptual analysis

The purpose of this paper is to describe the theory of market efficiency and verify if their characteristics and principals are applied to the digital capital market based on blockchain technology, such as initial coin offerings (ICOs). Indeed, this work presents a comparative approach between the efficient capital market principals and the fundamentals of ICOs based on a documentary and qualitative analysis of the scientific literature and ICOs professional reports concerning the most relevant keywords related to the conceptual framework of market efficiency. As a result, we conclude according to our comparative conceptual model that ICOs market based on smart contract has many similarities with the efficient capital market where the self-regulation is the rule and each investor has free access to relevant information, and then all transactions are executed in such trust and transparency. Moreover, many factors such as regulation and institutional disclosure, liquidity and systemic risk have a significant impact on the market efficiency according to the scientific literature and professional experiences.