Date of Submission
Open Access Senior Thesis
Bachelor of Arts
Professor Janet Smith
Non-fungible tokens (NFTs) have emerged as a new means of digital asset ownership and many companies are building projects that revolve around the technology. These companies are blockchain-based and raise capital for their projects through cryptocurrency token sales, which have become a new mechanism of entrepreneurial finance. In a sample of 62 NFT-related companies, I examine which company, fundraising, and token sale process characteristics are associated with the performance of 7-day and 60-day market returns after a token’s public listing. A multivariate regression analysis finds that the total amount of capital raised before a token launch has a negative relationship with the 7-day and 60-day market returns. Ethereum returns, the length of the team token lock-up period and the presence of a vesting schedule have positive relationships with 60-day token returns.
Liu, Robert, "NFT-Related Companies: Token Sale Returns" (2022). CMC Senior Theses. 2869.