Date of Conferral

2023

Degree

Ph.D.

School

Management

Advisor

Nikunja Swain

Abstract

Uncertainty in markets increases the likelihood of market failure due to volatility and suboptimal functioning. While initial coin offerings (ICOs) and crowdfunded equity (CFE) offerings may improve functioning in growing markets, there is a lack of knowledge and understanding pertaining to the relative efficiency and behavior of ICO markets compared to CFE markets, potentially perpetuating and thwarting the various communities they are intended to serve. The purpose of this correlational study was to compare a group of ICOs with a group of CFE offerings to identify predictive factors of funding outcomes related to both capital offering types. Efficient market hypothesis was the study’s theoretical foundation, and analysis of variance was used to answer the research question, which examined whether capital offering type predicted the amount of funds raised while controlling for access to the offering companies’ secondary control factors: historical financial data, pro forma financial projections, detailed product descriptions, video of product demonstrations, company website, company history, company leadership, and company investors. Relying on a random sample of 115 campaigns (84 ICOs and 31 CFE) from websites ICOdrops.com, localstake.com, fundable.com, and mainvest.com, results showed differences in mean funds raised between CFEs and ICOs ($346,075 compared to $4,756,464, respectively). ANOVA results showed no single secondary control factors and only one two-factor interaction (company leadership and company investors) influenced mean funds raised. This study may contribute to positive social change by informing best practices among market participants including entrepreneurs, regulators, scholars, and investors.

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