Investigating Factors Affecting the Success of the Initial Coin Offering Method with the Support Vector Machine (SVM) Algorithm

Document Type : Research Paper

Authors

1 PhD Student at Facility of Economic and Management of Tarbiat Modares University

2 Professor of Economics,Department of Economic,Yazd University

3 Associate Professor, Tarbiat Modares University, Department of Economics, Tehran, Iran

10.30465/jnet.2024.45820.2051

Abstract

Financing is very important for businesses. Initial Coin Offering is a new way of financing businesses based on blockchain technology. It seems necessary to explain this method and calculate its success factors. Therefore, in this article, using the support vector machine (SVM) algorithm, we have investigated the factors affecting the success of initial coin offering campaigns among 307 projects from 2016 to the end of 2018. In this article, the effect of the characteristics of the project, campaign, social networks and the team in a cumulative process on the two target variables- the total amount raised in the ICO process, and the percentage of hard cap (maximum capital determined by the founders of the project) raised as success criteria- have been examined in two separate model series. By obtaining the optimal models based on their performance and prioritizing the features using the Lasso technique, this article shows the two features of "Token supply is fixed" and "availability of smart contract code" have the highest level of influence in the success of an Initial Coin offering According to the results of both optimal models.

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History

  • Receive Date: 12 June 2023
  • Revise Date: 09 September 2023
  • Accept Date: 13 October 2023

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