The Influence of National Economic and Financial Systems on the Performance of Initial Coin Offerings
Journal Title: Journal of Corporate Governance, Insurance, and Risk Management - Year 2024, Vol 11, Issue 2
Abstract
The rapid emergence of blockchain technology has facilitated the rise of Initial Coin Offerings (ICOs), offering an innovative approach to raising capital for startups and entrepreneurial ventures. Unlike conventional financing, where projects rely on internal resources or traditional external investments, ICOs enable firms to secure funding directly from the public through token sales. As this new form of crowdfunding gains momentum, the structure of national economic and financial systems has been identified as a critical factor influencing the success and performance of ICOs. Recent research has increasingly focused on comparing ICO markets with traditional corporate financing to better understand the dynamics at play. In this study, an econometric model was constructed to investigate how variations in a country’s financial and economic structures shape the fundraising outcomes of ICOs. A sample of 100 startups from diverse countries, including the United Kingdom, the United States, Austria, and South Africa, was analysed. The ordinary least squares (OLS) method was employed to estimate the model, defined as: Log(funds) = α + β1(fin) + β2(b) + β3(n) + β4(in) + . The variables represent key economic and financial indicators hypothesised to affect ICO performance, with rigorous statistical tests conducted using R Studio and Excel. Findings are expected to contribute to the growing body of literature by clarifying the extent to which national financial systems either facilitate or hinder the success of ICO fundraising campaigns. This research also provides valuable insights into the evolving role of financial innovation and regulation in the cryptocurrency ecosystem.
Authors and Affiliations
Lemsi Meriem, Jamel Eddine Henchiri
Keywords
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- EP ID EP752422
- DOI https://doi.org/10.56578/jcgirm110205
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