Tokens and ICOs: A Review of Economic Literature
Andrea Canidio, Vincent Danos, Stefania Marcassa, Julien Prat
Abstract
This review paper provides a comprehensive survey of the economic literature surrounding Initial Coin Offerings (ICOs) and the broader token ecosystem. Canidio et al. synthesize existing studies to identify key themes, including the mechanisms of token issuance, the role of community-driven development, and the regulatory challenges inherent in non-traditional fundraising. The methodology involves a meta-analysis of academic papers published during the peak of the ICO cycle. The findings highlight the dual nature of tokens as both investment assets and functional utilities, noting the inherent tension in these roles. The paper is a definitive reference point for researchers and policy analysts looking to understand the historical evolution of crypto-fundraising and the lessons learned regarding market efficiency, fraud protection, and investor behavior during high-volatility financial events.
Key Findings
- 1ICOs represent a distinct financing model that defies traditional venture capital classifications.
- 2Tokens frequently experience extreme price volatility due to the blend of speculation and utility.
- 3Regulatory frameworks have been slow to adapt to the realities of tokenized capital formation.
- 4Community involvement is a key determinant of success for token-based projects.
Topics
Citation
BibTeX
@misc{tokensand2021,
title = {Tokens and ICOs: A Review of Economic Literature},
author = {Andrea Canidio and Vincent Danos and Stefania Marcassa and Julien Prat},
year = {2021},
howpublished = {\url{https://hal.science/hal-03678409v1/file/overview_ICO_v10.pdf}},
}Knowledge Explorer
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