HOW DOES INFORMATION DISCLOSURE OF CRYPTOCURRENCY WHITEPAPER AFFECT INITIAL COIN OFFERING FUNDRAISING SUCCESS?

ABSTRACT The main function of the initial coin offering (ICO) whitepaper is to eliminate the impact of information mismatch between investment and financing parties. Based on signaling theory, this study analyzes the factors that affect the success of ICOs. To analyze the impact of the disclosure of whitepapers on successful ICO fundraising, the whitepaper information is classified into four directions: fundraising characteristics, project characteristics, human capital, and social capital. At the same time, supplement the ICO project information regarding each cryptocurrency with public information on their official website and social media, ensuring the timeliness and integrity of the analyzed data. Analyze the impact of disclosure on the success of an ICO by constructing a logistic regression model. Due to the two extremes of regulation for cryptocurrency in different countries, either their registration is forbidden or the absence of regulation, resulting in the lack of uniform standards for the information disclosed in the whitepaper, and it is difficult to distinguish between true and false. Low-quality information disclosure has little impact on the successful financing of ICOs and has limited reference value to cryptocurrency investors and investors alike.