The Effect of Celebrity Endorsements on Crypto: Evidence from Initial Coin Offerings (ICOs)
SSRN Electronic Journal
2024
- 1Citations
- 3,034Usage
- 4Captures
- 2Mentions
Metric Options: Counts1 Year3 YearSelecting the 1-year or 3-year option will change the metrics count to percentiles, illustrating how an article or review compares to other articles or reviews within the selected time period in the same journal. Selecting the 1-year option compares the metrics against other articles/reviews that were also published in the same calendar year. Selecting the 3-year option compares the metrics against other articles/reviews that were also published in the same calendar year plus the two years prior.
Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Most Recent News
Celebrities boost crypto projects but don’t guarantee legitimacy
Celebrity backing can make a big difference in the success of a crypto project, but that doesn’t mean the endorsement of a famous person makes
Article Description
We study the relation between celebrity endorsements and cryptocurrency outcomes, focusing on initial coin offerings (ICOs) of utility tokens. Using a global sample of 1,500 ICOs across 95 countries, our findings show that celebrity endorsements help issuers achieve higher fundraising goals and increase capital raised, thereby enhancing initial success. However, these endorsements often replace traditional demand-generating mechanisms, such as pre-sales, undermining pre-ICO price discovery processes. Despite their influence on early-stage outcomes, celebrity endorsements do not correlate with greater long-term success, such as the development of working products or platforms. Notably, celebrity-endorsed ICOs are more likely to be associated with scams, particularly when paired with extended vesting periods that obscure market signals. We also identify specific features of celebrities' social media promotions that amplify both fundraising potential and fraud risks. Endorsements from celebrities with expertise aligned to the ICO project's focus mitigate some risks, emphasizing the importance of source credibility in shaping investor trust. These findings highlight the double-edged role of celebrity promotions in speculative markets, offering valuable insights into their influence on investor behavior and issuer strategies.
Bibliographic Details
Provide Feedback
Have ideas for a new metric? Would you like to see something else here?Let us know