Does policy uncertainty of the blockchain dampen ICO markets?
Zhang,Shuyu Zhang,Dunli Zheng,Jianming Aerts,Walter
Zhang,Shuyu
Zhang,Dunli
Zheng,Jianming
Aerts,Walter
Abstract
Policy uncertainty created by regulatory authorities regarding the blockchain matters for the initial coin offering (ICO) market. Using an ICO dataset from four major cryptocurrency exchanges, we find that higher policy uncertainty regarding the blockchain leads to a lower return and a lower trading volume of an ICO on its first trading day. Although ICOs are decentralised by design and less vulnerable to direct regulatory intervention, we conclude that blockchain policy uncertainty constitutes an important component of the information environment of ICO ventures.
Description
Date
2021-04
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
Policy uncertainty, Blockchain, Initial coin offering, Cryptocurrency, POLITICAL UNCERTAINTY, BITCOIN, RISK
Citation
Zhang, S, Zhang, D, Zheng, J & Aerts, W 2021, 'Does policy uncertainty of the blockchain dampen ICO markets?', Accounting and Finance, vol. 61, no. S1, pp. 1625-1637. https://doi.org/10.1111/acfi.12639