@article {Cerchiello13, author = {Paola Cerchiello and Paolo Tasca and Anca Mirela Toma}, title = {ICO Success Drivers: A Textual and Statistical Analysis}, volume = {21}, number = {4}, pages = {13--25}, year = {2019}, doi = {10.3905/jai.2019.21.4.013}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Recently, tech-savvy start-ups and SMEs have begun to finance their business by raising funds through the issuance and sale of {\textquotedblleft}branded{\textquotedblright} newly minted digital currencies. Since this alternative capital market is largely unregulated, investors need to separate the drivers of business success from those that indicate failure, or worse, fraudulent money-raising. Through standard logistic regression and extreme value logistic regression, the authors are able to shed light on the riskiest business projects. In particular, they find that the existence of a white paper, the number of advisors, the number of people on the team, and the presence of a Telegram chat are significant factors useful for discerning a successful capital raising from an unsuccessful one. Conversely, the non-existence of a company website and an inactive Twitter account are indicators of a possible scam.TOPICS: Statistical methods, currency}, issn = {1520-3255}, URL = {https://jai.pm-research.com/content/21/4/13}, eprint = {https://jai.pm-research.com/content/21/4/13.full.pdf}, journal = {The Journal of Alternative Investments} }