Initial Coin Offerings and the Value of Crypto Tokens

ArXiv ID: ssrn-3143343 “View on arXiv”

Authors: Unknown

Abstract

This paper explores how entrepreneurs can use initial coin offerings — whereby they issue crypto tokens and commit to only accept those tokens as payment for th

Keywords: Initial Coin Offerings (ICOs), Crypto Tokens, Crowdfunding, Blockchain, Alternative Investments

Complexity vs Empirical Score

• Math Complexity: 6.5/10
• Empirical Rigor: 3.0/10
• Quadrant: Lab Rats
• Why: The paper employs a formal economic model with equilibrium analysis and derives theoretical results about token value and fundraising, indicating moderate-to-high mathematical complexity. However, the work is primarily theoretical with no backtests, datasets, or empirical implementation details, placing it in the ‘Lab Rats’ quadrant.

  flowchart TD
    A["Research Question<br/>Value of crypto tokens in ICOs"] --> B["Methodology<br/>Theoretical model & entrepreneurial decisions"]
    B --> C["Data/Input<br/>Token demand, network size, funding goals"]
    C --> D["Computational Process<br/>Mathematical derivation of token value"]
    D --> E["Key Findings<br/>Tokens enable crowdfunding<br/>Value tied to platform usage<br/>Commitment to token acceptance is key"]