Abstract:

This study explores how signals and cues originating from marketer-generated content (MGC) in Initial Coin Offerings (ICOs) projects, such as whitepapers and promotional videos, transition into user-generated content (UGC) narratives. Using signalling theory as a framework, we examine the emotional and informational dynamics that shape investor sentiment and decision-making.

We identify critical gaps in existing literature of signals and cues in ICOs, including the lack of focus on the transmission mechanisms of signals between MGC and UGC and the role of tone (positive vs. negative) in influencing outcomes. A multiple-case study approach involving 20 ICOs was employed, analysing extensive textual data from whitepapers, video transcripts, and online comment sections. The findings reveal that while technical signals from whitepapers are diluted as they migrate to UGC platforms, positive emotional tones dominate, significantly influencing investor engagement. Independent influencers amplify these positive signals, acting as intermediaries who reshape narratives for broader audiences.

The results challenge assumptions about whitepapers as the primary source of investor information, emphasizing the significance of video-based mediums and emotional tones in ICO success. This research advances signalling theory and offers insights into manipulating signals that create information asymmetry, with implications for communication through crowdfunding technologies.

Please choose your submission type: Full Paper

Primary Track: Entrepreneurship

Keywords: Entrepreneurship in emerging markets

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Dr. Alexander Jader