Journal #49: ALTERNATIVE CAPITAL MARKETS

TOKEN OFFERINGS : A REVOLUTION IN CORPORATE FINANCE?

  • Published: 29 April 2019

PAUL P. MOMTAZ | Ph.D. Candidate, Anderson School of Management, UCLA
KATHRIN RENNERTSEDER |
Consultant, Financial Advisory, Deloitte
HENNING SCHRÖDER |
Assistant Professor of Corporate Finance, University of Hamburg, and Hamburg Financial Research Center

Token offerings or initial coin offerings (ICOs) are blockchain-based smart contracts designed to raise external finance without an intermediary. The new technology might herald a revolution in entrepreneurial and corporate finance, with soaring market growth rates over the last two years.

This paper surveys: 

  • Market evolution
  • Offering mechanism
  • Token types

The paper also presents stylized facts on the pricing and long-term performance of ICOs and examines lessons learned from the first wave of token sales.