Impact of Social Media on Fundraising Success in Initial Coin Offering (ICO): An Empirical Investigation

Initial coin offerings (ICOs) have become a major financing method for blockchain-related projects. However, ICO initiators face big challenges to attract investor attention systematically. Due to a lack of information, it is difficult for investors to evaluate the value of ICO projects. In general, ICO initiators have limited ways to inform potential investors of project related information. Although previous research shows social media can help firms to disseminate information and interact with customers, few studies examine how organizations can actively operationalize their social media account so as to improve ICO performance in particular. Specifically, we analyze a unique dataset consisting of more than 1700 ICO projects with firm social media activities. Combining social marketing and social learning theory, our study reveals that high activeness of firms and good timing announcements on social media are helpful with attracting investors and obtain better fundraising results in ICOs.