Year of Graduation
Success Factors of ICO Campaigns for the Attraction of Project Investments
Capital outflow became a real threat to Russia's economic growth. According to the Central Bank report of last year, the investments outflow from the country increased by 2.7 times. As our study demonstrates, the reason was the departure from the market of foreign investors and the slowdown in investment activity in the private sector. In our research, we consider ICO as a solution to the problem of capital outflow. However, we also noticed that due to the lack of legislative regulations of this investment process, the purchase of cryptoassets became very risky. According to Ernst & Young’s (2017) report, only 23% of projects can be identified as successful. In this regard, there is a need to develop tools for assessing the success of the project. To solve this problem, we have formed a sample of 672 projects and gave two alternative definitions of the success of an ICO campaign: in terms of an active and passive investment strategy. In the first case, logistic regression was used to test the hypotheses, where the depended variable was a probability of reaching the minimum established amount. As for the second definition, to identify the factors that influence the success of the ICO campaign, we used multifactor regression, where the dependent variable was the logarithm of the collected amount. As independent variables, we used: project and ICO campaign characteristics, as well as marketing and communication characteristics. The results of the work allow investors to understand whether the project deserves attention or not, tokens issuers build a successful ICO campaign, and the regulatory authorities to start forming legislation for the new investment process - Initial Coin Offering.