Abstract

Purpose: The objective of this research was to investigate how blockchain ventures can optimize their wealth through Initial Coin Offerings (ICOs). Drawing upon signal theory, this study examined the impact of technological capabilities on the performance of ICOs in blockchain ventures. Given the highly technical nature of companies involved in ICOs, the technical proficiency of venture companies can have a significant influence on the success of ICOs. Specifically, three potential indicators of technological capability - patents, white papers, and source code - were analyzed. Research design, data and methodology: To accomplish this, a database was constructed by coding the relevant variables from various sources for 514 companies that launched ICOs. This study conducted hierarchical regression analysis for the hypotheses test. Results: The results indicated that a blockchain venture with a patent had a positive effect on the performance of the ICO. Additionally, publishing source code had a positive impact on ICO performance. Conclusions: This study identifies crucial factors for ICO success, emphasizing the importance of technological capabilities. Companies should enhance these to boost investor confidence, transparency, and outcomes. This research offers valuable insights for businesses and policymakers in the evolving cryptocurrency market, aiming to maximize ICO performance and success.