Parent to a College Student | Tandean Rustandy Esteemed Endowed Chair, University of Colorado-Boulder | TUM Ambassador | Professor, Alliance Manchester Business School
Now available as an Open Access article. Our paper shows that when you disclose the details of smart contracts (lockups) that consumers change their investment decisions. It implies that financial regulation which demands transparency is a remedy for the peril posed by blockchain based investments such as cryptocurrency, ICOs and NFTs. While some present the technology (blockchain) as the solution, we contend that our findings imply that government can play a powerful role in bringing stability to unregulated blockchain enabled financial markets - by ensuring token issuers provide enough information that Investors can make informed decisions. #blockchain #icos #crypto #regulation #nfts #investors
We have published new research: "The effect of lockup and persuasion on online investment decisions: An experimental study in ICOs", by Moritz Bruckner Universität Augsburg, Dennis Steininger Rheinland-Pfälzische Technische Universität Kaiserslautern-Landau (RPTU), Jason Thatcher Fox School of Business at Temple University & Daniel J Veit Universität Augsburg https://lnkd.in/ebAyVQTZ Abstract Many firms use social media (SM) to solicit online investments. In this study, we examine the interaction between SM attributes and online-investment attributes to determine how this interaction shapes users’ investment decisions. Specifically, we investigate initial coin offerings (ICOs) as an application domain of distributed ledger technology for peer-to-peer investment. We use signaling theory to develop a context-specific explanation for how the interplay of persuasion signals found in SM and technology-enforced lockups shapes individuals’ ICO investment decisions. To evaluate this interplay, we conducted a 2 × 2 factorial experiment with 473 participants. The results show that when an investment does not require a technology-enforced lockup, persuasion signals encourage investments in ICOs; however, when an investment requires a technology-enforced lockup, persuasion signals do not affect investments in ICOs. Furthermore, our analyses suggest that combining a technology-enforced lockup and persuasion signals reduces the ICO’s plausibility. This is the first study to investigate how the willingness to invest in ICOs is influenced by the relationship between technology-enforced lockups and persuasion signals. The findings have practical implications for individuals attempting to make sound decisions on ICO investments, policymakers regulating online investments, and firms seeking to attract investors. #informationsystems #Fintech #SocialMedia #ICO #Investement #onlineinvestment
