PT  - JOURNAL ARTICLE
AU  - Mark Anson
TI  - Initial Coin Offerings: <em>Economic Reality or Virtual Economics?</em>
AID  - 10.3905/jpe.2018.21.4.041
DP  - 2018 Aug 31
TA  - The Journal of Private Equity
PG  - 41--52
VI  - 21
IP  - 4
4099  - https://pm-research.com/content/21/4/41.short
4100  - https://pm-research.com/content/21/4/41.full
AB  - Since the birth of Bitcoin in 2009, digital currencies have grown exponentially, spurring debate over their legitimacy. Despite their controversy, they are now impacting the way start-up companies raise capital to finance their initial operations. Called Initial Coin Offerings (ICOs), these funding vehicles raised over $4 billion in 2017. In this article, the author explores the economics of ICOs, and consider their risks and regulatory implications, and their placement within the capital structure of start-up companies.TOPICS: Private equity, legal/regulatory/public policy, currency, risk management