Abstract
High-tech companies operating in the field of blockchain technology use the Initial Coin Offering (ICO) to raise start-up capital. It is a fairly new, non-standardized and poorly regulated way of collecting start-up funding that can bring high yields to investors in the short term, but investors also have to be ready to take on high risks. The purpose of this article is to define a decision model for the evaluation of ICO projects, which provides a systematic, transparent, methodological approach to making decisions on investing in them. For that purpose, the authors analyzed a number of factors, which directly or indirectly influence the successful implementation of ICO projects, and the researchers extracted the most important among them (model parameters). In order to build the decision model, used a qualitative method for the hierarchical multi-parameter evaluation of DEX, which using symbolic parameters and combining functions in the form of if-then rules ensures the most freely and flexible combining assessment parameters into a uniform model. In the article, the use of proposed decision model was tested in practice on multiple ICO processes. The article details the decision-making process in the case of CargoX, and also summarizes the results of the evaluation of ICOs Tokens.net, BitClave, Neuromation and WePower.
Highlights
Blockchain technology is one of the biggest innovations that have emerged on the Internet in recent years, as it enables the secure and reliable creation and exchange of digital assets, as well as the establishment of programmable contracts between clients
High-tech companies operating in the field of blockchain technology use the Initial Coin Offering (ICO) to raise start-up capital
The multi-parametric hierarchical decision model resented the entrance to a thorough analysis and for the evaluation of ICO projects was checked us- evaluation, where we focused on the criteria deing a case study method of multiple ICO processes fined in the model
Summary
Blockchain technology is one of the biggest innovations that have emerged on the Internet in recent years, as it enables the secure and reliable creation and exchange of digital assets (cryptocurrency), as well as the establishment of programmable contracts between clients The latter was the reason for the emergence and rapid introduction of a completely new way of collecting start-up assets for technology companies, known as ICO (Initial Coin Offering). The first ICO was launched by Willett in 2013 under the name Mastercoin ( called Omni Layer) in which raised together USD 500,000 (Shin, 2017) Another important milestone in the field of ICO process is the creation of Ethereum company, which was founded by Vitalik Buterin at the end of 2013, and the company organized massive sales of Ether tokens and gained over USD 18 million of start-up capital. This is due to a number of reasons, where, on the one hand, the companies themselves are guilty, because they focus more on getting funds than on the final product, and, on the other hand, investors who unwisely invest in projects without a thorough analysis and reflection, all with the aim of maximizing and quick earnings
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