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Updated: Dec 11, 2025

The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm
Published on: October 20, 2022
ICO investors
Rüdiger Fahlenbrach1,2, Marc Frattaroli1
1Swiss Finance Institute @ EPFL, Quartier Unil-Chamberonne, Extranef 211, 1015 Lausanne, Switzerland.
Abstract:
We conduct a detailed analysis of investors in successful initial coin offerings (ICOs). The average ICO has 4700 contributors. The median participant contributes small amounts and many investors sell their tokens before the underlying product is developed. Large presale investors obtain tokens at a discount and flip part of their allocation shortly after the ICO. ICO contributors lack the protections traditionally afforded to investors in early-stage financing. Nevertheless, returns 9 months after the ICO are positive on average, driven mostly by an increase in the value of the Ethereum cryptocurrency.
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