kaal:claim:3117224-006

Capped ICO raises, adopted to address investor uncertainty about platform valuation in uncapped raises, backfire by creating strong incentives for investors to get in first and thereby raising the likelihood of retail investor frenzy.

Source quote, verbatim

However, capped ICO raises crate significant incentive for investors to attempt to get in first, raising the likelihood of retail investor frenzy.

From

Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018), II. Regulatory Concerns, p. 4
https://ssrn.com/abstract=3117224 · source PDF

Cite as

Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224

Holds when

capped ICO raises

Classification

failuresupport: arguedfailure: capped-raise-frenzyfamily: staking-and-incentive-misalignmenteconomics

Related claims

extends kaal:claim:3067615-034 An ICO that proposes an uncapped raise without an underlying product is a very serious red flag, because uncap...

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