# kaal:claim:3117224-006

**Claim.** 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.

**Type.** failure  **Support.** argued

**Holds when.**

- capped ICO raises

**Source quote.**

> 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, page 4

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

**Verify.** sha256 of source PDF `83e9ccb9219a217d9fcfc5c098b897229ee7cf85623bee3ae22d2e986548466b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202018%20-%20Initial%20Coin%20Offerings%20The%20Top%2025%20Jurisdictions%20and%20Their%20Comparative%20Regulatory%20Responses.pdf

**Failure mode.** capped-raise-frenzy  (family: staking-and-incentive-misalignment)

**Topics.** economics

**Keywords.** capped-raises, retail-investors, market-abuse, investor-protection

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3067615-034

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.