The determinants of the Initial Coin Offering (ICO). A cross-country study

This study provides a cross-country analysis of the determinants of Initial Coin Offering (ICO) emergence. Our empirical findings indicate a positive correlation between ICO activity and a country's environmental orientation, as well as the quality of its educational and research institutions. Conversely, the emergence of ICOs is negatively impacted by political instability, high country risk, significant bank concentration, high bank default rates, and restricted financial freedom. These results suggest ICOs are more prevalent in environmentally conscious nations, likely driven by demand for sustainable technology. They also function as alternative assets in politically unstable regions where trust in traditional monetary policy is diminished. The study provides valuable insights for entrepreneurs, investors, and policymakers by identifying the key institutional and economic factors that shape the ICO landscape. Future research is encouraged to explore country-specific characteristics and the evolving regulatory framework governing this financing mechanism.