Determinants of success in initial coin offerings (ICOs): A systematic literature review

Initial Coin Offerings (ICOs) have emerged as a transformative financing mechanism, allowing startups to raise capital through blockchain technology and digital tokens. This paper presents a systematic literature review of 115 articles published between 2016 and 2024, sourced from the Scopus database, aimed at identifying the key factors that contribute to the success of ICOs. The study categorizes these factors into four main areas: Human and Social Capital, Technological Characteristics, Governance and Legal Aspects, and Campaign Finance Details. The findings indicate that the success of ICOs is significantly influenced by the expertise and quality of the founding team, particularly their technical skills, reputation, and ability to engage effectively with the community. Technological elements, such as the quality of the source code, the type of token (utility vs. security), and the use of smart contracts, also play a crucial role in building investor confidence. Furthermore, governance and legal clarity are essential for long-term sustainability, with jurisdictions that offer supportive regulatory frameworks attracting a greater number of ICOs. In addition, transparent financial reporting, well-designed tokenomics, and effective campaign strategies have a substantial impact on fundraising success. This review emphasizes the necessity for practical and adaptive policymaking to address the complexities of the ICO market. Policymakers must strike a balance between investor protection and innovation, promote technological advancements while mitigating risks, and encourage international collaboration to harmonize regulatory standards. By synthesizing the current state of knowledge, this paper provides valuable insights for researchers, investors, entrepreneurs, and policymakers. It highlights the importance of a comprehensive approach to ICO regulation that integrates technological innovation, strong governance, and behavioral insights to foster a sustainable and inclusive blockchain-based business ecosystem.