Too Long; Didn't Read
Initial coin offerings (ICOs) are a new type of funding that has brought billions of dollars into the blockchain ecosystem. As of January 2021, 5728 ICO projects have attracted more than $27 billion. Little is known about entrepreneurs' motivations for utilizing this new form of financing. This article examines the economic and behavioral factors that drive startups to use ICOs to fund their startup operations. There are advantages in this model containing fewer regulations and rapid funding which may really act like a double-edge sword.