Cryptocurrencies & Initial Coin Offerings: Are they Scams? - An Empirical Study

Cryptocurrencies & Initial Coin Offerings: Are they Scams? - An Empirical Study

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The volume of Initial Coin Offerings (ICOs) hadrisen steeply with an all-time high market capitalisation of close to 1 trillion USD in December 2017.Since thenthe Maternity Pants digital asset market has slumped, retreating to approximately 200 billion USD by mid-2018.Stakeholders of the copyright industry have pondered the reasons for this retrenchment and are increasingly focusing on the notion that many ICOs could be scams.A recent industry study even went as far to claim that 80% of all ICOs are indeed scams.

In this paper, we investigate the question whether these scams are as common as claimed.We do so byfirstdefining what a scam isandsecondly, by drawing onempirical data to assess the number of cases fitting such a definition.Building ORG BROWN BASMATI RICE on Principal Agent Theory and based on the statistical analysis of our empirical data set we attempt to establish the current state of affairs with regards to scams in the copyright-currency world.The results of our study divert from salient beliefs.