The Wisdom of Crowds in FinTech: Evidence from Initial Coin Offerings

【Author】 Lee, Jongsub; Li, Tao; Shin, Donghwa

【Source】REVIEW OF CORPORATE FINANCE STUDIES

【影响因子】0.000

【Abstract】Certification by analysts on a FinTech platform that harnesses the wisdom of crowds is associated with successful initial coin offerings (ICOs). We show that favorable ratings by a group of analysts with diverse backgrounds positively predict fundraising success and long-run token performance. Analysts' ratings also help detect potential fraud ex ante. We document that analysts have career concerns and are incentivized by the platform to issue informative ratings. Overall, our results suggest that a market-based certification process that relies on a diverse group of individuals is at play in financing blockchain startups.

【Keywords】

【发表时间】2022 FEB

【收录时间】2022-02-07

【文献类型】期刊

【主题类别】

区块链治理--