TY - JOUR
T1 - Security token offerings
AU - Lambert, Thomas
AU - Liebau, Daniel
AU - Roosenboom, Peter
N1 - JEL Classifcations: G11 · G32 · G34 · L26 · M13
Publisher Copyright:
© 2021, The Author(s).
PY - 2021/9/12
Y1 - 2021/9/12
N2 - Abstract: This paper posits that distinguishing security token offerings (STOs) from initial coin offerings (ICOs) is important for the study of entrepreneurial finance. We first provide a working definition of a security token and present an overview of the STO market using a unique STO sample. The STO activity developed after the end of the ICO market bubble. The STO market is, however, still a nascent market. STOs are geographically dispersed but concentrated in jurisdictions with accommodating securities laws. Next, we explore STO success factors. We show that various issuer and offering characteristics traditionally used in the ICO literature also matter for STO success. We also find that success is associated with good governance practices, consistent with the corporate finance literature. We conclude by discussing the implications of native digital securities, the next generation of security tokens, for entrepreneurial finance.
AB - Abstract: This paper posits that distinguishing security token offerings (STOs) from initial coin offerings (ICOs) is important for the study of entrepreneurial finance. We first provide a working definition of a security token and present an overview of the STO market using a unique STO sample. The STO activity developed after the end of the ICO market bubble. The STO market is, however, still a nascent market. STOs are geographically dispersed but concentrated in jurisdictions with accommodating securities laws. Next, we explore STO success factors. We show that various issuer and offering characteristics traditionally used in the ICO literature also matter for STO success. We also find that success is associated with good governance practices, consistent with the corporate finance literature. We conclude by discussing the implications of native digital securities, the next generation of security tokens, for entrepreneurial finance.
UR - http://www.scopus.com/inward/record.url?scp=85115010679&partnerID=8YFLogxK
U2 - 10.1007/s11187-021-00539-9
DO - 10.1007/s11187-021-00539-9
M3 - Article
AN - SCOPUS:85115010679
VL - 59
SP - 299
EP - 325
JO - Small Business Economics
JF - Small Business Economics
SN - 0921-898X
IS - 1
ER -
