Signalling in Initial Coin Offerings: The Key Role of Entrepreneurs’ Self‐efficacy and Media Presence

By analyzing data of more than 1,000 initial coin offerings (ICOs) obtained from seven different ICO information platforms, we investigate the effectiveness of signals used by entrepreneurs to foster ICO funding success. In particular, we examine the effectiveness of venture quality (human capital), level of uncertainty (entrepreneurs’ self-efficacy and ambiguity reduction), and level of familiarity among potential investors (media presence). Results imply that media presence and entrepreneurs’ self-efficacy are effective signals in the ICO market and thus can increase funding success. Project initiators who communicate (more actively) via social media collect more funds than those who do not. Analogously, entrepreneurs appearing self-efficacious with regard to the quality of their venture receive more funds.