# kaal:claim:3067615-006

**Claim.** The pre-ICO price of a cryptocurrency is set arbitrarily by the start-up team that structured the offering, while post-ICO price dynamics are left to supply and demand determined by the network of participants rather than any central authority.

**Type.** mechanism  **Support.** argued

**Holds when.**

- standard ICO pricing practice as of 2017

**Source quote.**

> A cryptocurrencies' *"pre-ICO price" is arbitrarily determined by the start-up team that structured the ICO, 24 whereas the post-ICO price dynamics are determined by supply and demand.

**From.** Wulf A. Kaal, Marco Dell'Erba, *Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags* (2017), II.1 Roadmap, page 8

**Cite as.** Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615

**Verify.** sha256 of source PDF `164ce15b9eb1e8847ebcb073f5b23a96b4974ad0308d77469a9455d4a1ebeb38` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Dell%27Erba%20-%202017%20-%20Initial%20Coin%20Offerings%20Emerging%20Practices%2C%20Risk%20Factors%2C%20and%20Red%20Flags.pdf

**Topics.** tokenomics, economics, decentralization

**Keywords.** token-pricing, supply-and-demand, valuation, decentralization

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