Initial Coin Offerings What, Why, How Beatrice Weder di Mauro - - PowerPoint PPT Presentation

▶
initial coin offerings what why how
SMART_READER_LITE
LIVE PREVIEW

Initial Coin Offerings What, Why, How Beatrice Weder di Mauro - - PowerPoint PPT Presentation

Jun 06, 2023 209 likes •491 views

Initial Coin Offerings What, Why, How Beatrice Weder di Mauro INSEAD and CEPR Singapore, 26-06-2018 Beatrice Weder di Mauro No. 0 /21 Outline 1. What and why ICO 2. The good, the bad, the evil 3. Some stats 4. Regulating ICOs Beatrice

slide-1
SLIDE 1

Beatrice Weder di Mauro

  • No. 0 /21

Initial Coin Offerings What, Why, How

Beatrice Weder di Mauro INSEAD and CEPR Singapore, 26-06-2018

slide-2
SLIDE 2

Beatrice Weder di Mauro

  • No. 1 /21

Outline

  • 1. What and why ICO
  • 2. The good, the bad, the evil
  • 3. Some stats
  • 4. Regulating ICOs
slide-3
SLIDE 3

Beatrice Weder di Mauro

  • No. 2 /21
  • 1. The What
  • A new form of corporate finance
  • An way of stimulating innovation in tech
  • A new era of currency competition
  • Liberation from government and central banks
  • Save the world with a blockchain
  • A perfect scam
slide-4
SLIDE 4

Beatrice Weder di Mauro

  • No. 3 /21
  • 1. The What: Mostly scams?

Source: https://news.bitcoin.com/80-of-icos-are-scams-only-8-reach-an-exchange/

slide-5
SLIDE 5

Beatrice Weder di Mauro

  • No. 4 /21
  • 1. The What
  • Types of projects

– Technology – A lot more ..

  • Types of coin

– Payments – Equity like – Utility tokens

Source: https://www.coinschedule.com/stats.html?year=2018

slide-6
SLIDE 6

Beatrice Weder di Mauro

  • No. 5 /21
  • 1. The What: Platforms with native (utility) tokens

Howell, Niessner and Yermak 2018

  • Disintermediation of internet-based marketplaces:

– Decentralize platform management – value accrues to token holders

  • Token’s value = value of the network:

– token buyers fund the development, – token rewards network creators without giving them control – token creates customer commitment since it’s use is limited to the specific platform.

slide-7
SLIDE 7

Beatrice Weder di Mauro

  • No. 6 /21
  • 1. The Why : Economics
  • Completing markets?
  • Financing : Market failure in financing new venture

– Arguments for public support of infant industries – Imperfections of VC, PE, crowdfunding, seed funding, – Expanding club funding

  • Savers: Access to assets class
  • All of the above?
slide-8
SLIDE 8

Beatrice Weder di Mauro

  • No. 7 /21
  • 2. The good the bad and the evil
slide-9
SLIDE 9

Beatrice Weder di Mauro

  • No. 8 /21
  • 2. The good
slide-10
SLIDE 10

Beatrice Weder di Mauro

  • No. 9 /21
  • 2. The good
slide-11
SLIDE 11

Beatrice Weder di Mauro

  • No. 10 /21
  • 2. The bad
slide-12
SLIDE 12

Beatrice Weder di Mauro

  • No. 11 /21
  • 2. The bad
slide-13
SLIDE 13

Beatrice Weder di Mauro

  • No. 12 /21

Beatrice Weder di Mauro

  • No. 3 /10
  • 2. The bad

“Surprisingly, in a community known for espousing a technolibertarian belief in the power of “trustless trust” built with carefully designed code, a significant fraction of issuers retained centralized control through previously undisclosed code permitting modification of the entities’ governing structures” (Cohney et. Al. 2018)

slide-14
SLIDE 14

Beatrice Weder di Mauro

  • No. 13 /21

Beatrice Weder di Mauro

  • No. 3 /10
  • 2. The evil
slide-15
SLIDE 15

Beatrice Weder di Mauro

  • No. 14 /21

Beatrice Weder di Mauro

  • No. 3 /10
  • 2. The evil
slide-16
SLIDE 16

Beatrice Weder di Mauro

  • No. 15 /21

Beatrice Weder di Mauro

  • No. 3 /10
  • 2. The evil
slide-17
SLIDE 17

Beatrice Weder di Mauro

  • No. 16 /21
  • 3. The Stats

Beatrice Weder di Mauro

  • No. 2 /10
  • Properties of a new asset class (Hu, Parlor, Rajan 2018)

Sample of 64 largest ICOs

– ICO First day returns High (mean 4,7% median 115%) – IPO first day return IPO (mean 12.1%) Secondary market – Correlation with S&P low 0.0045 (daily return) – Correlation with Gold low 0.061 – Correlation with Bitcoin low 0.021

slide-18
SLIDE 18

Beatrice Weder di Mauro

  • No. 17 /21
  • 3. The Stats
slide-19
SLIDE 19

Beatrice Weder di Mauro

  • No. 18 /21
  • 3. The Stats
slide-20
SLIDE 20

Beatrice Weder di Mauro

  • No. 19 /21

https://cryptovalley.swiss/wp-content/uploads/20171221_PwC-S-CVA-ICO-Report_December_final.pdf

slide-21
SLIDE 21

Beatrice Weder di Mauro

  • No. 20 /21
  • 4. Regulation uncertainty
slide-22
SLIDE 22

Beatrice Weder di Mauro

  • No. 21 /21
  • 4. Regulation
  • On what grounds?

– What benefits does the asset class provides (diversification, new venture financing (see point 1.)? – What costs/externalities (environment, social assistance, misallocation of resources)?

  • Protection of what/who?

– Financial system stability – Financial center competitiveness – Investors protection

slide-23
SLIDE 23

Beatrice Weder di Mauro

  • No. 22 /21
  • 4. Regulation
  • On grounds of level playing field (Duck test)

– Technologically neutral – By type of token

  • Investor protection ok, but how

– Prohibition – Risk tolerance/knowledge – Transparency

slide-24
SLIDE 24

Beatrice Weder di Mauro

  • No. 23 /21

Conclusions, what I would like to know

  • 1. Why token financing?
  • 2. What are the properties?
  • 3. Why regulate?

Research & Policy Network @ CEPR

  • n Fintech and Digital Currency

Lead by Antonio Fatas

slide-25
SLIDE 25

Beatrice Weder di Mauro

  • No. 24 /21

Thank you

slide-26
SLIDE 26

Beatrice Weder di Mauro

  • No. 25 /21

https://cryptovalley.swiss/wp-content/uploads/20171221_PwC-S-CVA-ICO-Report_December_final.pdf