Criteria for Initial Coin Offer Evaluation
Abstract
High-tech companies operating in the field of blockchain technology use the initial coin offering (ICO) approach to collect startup capital. It is a completely new way of raising funds, which has in the past two years gained unexpected proportions, since more than five billion dollars of capital flowed into startup companies in 2017 alone. The ICO process itself is not standardized, the area is poorly regulated, most companies do not have verifiable history and many innovative ideas are difficult to implement. Despite these threats, the past has shown that many projects have yielded high returns to early investors, which is also a key motivation for most of today's investors in new technologies. In the paper, we define key criteria and measures, combined in a multi-parameter decision model that enables a transparent and credible evaluation of ICO projects.
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