How a company can fund itself by IPOs of digital blockchain-based assets

Nhung Nguyen

Master's thesis

Abstract:

In the advent of Blockchain technology in every aspect of life, digitalization and innovation is indispensable development in finance including funding process. The outstanding features of Blockchain are changing the way of traditional Initial Public Offering (IPO) into new fundraising mechanisms such as Initial Coin Offerings (ICO) or Security Token Offerings (STO), Initial exchange offering (IEO), etc. These new ways of financing a company by means of digital assets (crypto-coins, security tokens) are regarded as the next generation of IPOs. This thesis aims at illustrating how Blockchain technology can be utilized in financing, comparison between traditional IPO and new financing methods and how these new mechanisms can be applied by providing comprehensive studies regarding processes, scenarios, applicability, and challenges of the new funding mechanisms. Besides, this thesis at the same time analyses some specific cases of fund raising using ICO and STO to assess which factors drive success and failure of these new methods and presents future scenarios and recommendations.

Abstract:

In the advent of Blockchain technology in every aspect of life, digitalization and innovation is indispensable development in finance including funding process. The outstanding features of Blockchain are changing the way of traditional Initial Public Offering (IPO) into new fundraising mechanisms such as Initial Coin Offerings (ICO) or Security Token Offerings (STO), Initial exchange offering (IEO), etc. These new ways of financing a company by means of digital assets (crypto-coins, security tokens) are regarded as the next generation of IPOs. This thesis aims at illustrating how Blockchain technology can be utilized in financing, comparison between traditional IPO and new financing methods and how these new mechanisms can be applied by providing comprehensive studies regarding processes, scenarios, applicability, and challenges of the new funding mechanisms. Besides, this thesis at the same time analyses some specific cases of fund raising using ICO and STO to assess which factors drive success and failure of these new methods and presents future scenarios and recommendations.

Keywords

ICO, STO, Blockchain, IPO, Fundraising

Keywords

STO, Blockchain, IPO, Fundraising, ICO

Language used: English

Date on which the thesis was submitted / produced: 21. 12. 2022

Thesis defence

• Date of defence: 31. 1. 2023
• Supervisor: Karel Brůna
• Reader: Viktar Dudzich

Vysoká škola ekonomická v Praze

Master programme:
Finance and Accounting