Publication Type

Journal Article

Version

publishedVersion

Publication Date

12-2024

Abstract

The manuscript investigates whether the individual personality trait, Fear of Missing Out (FOMO)—typically considered negative—influences the willingness of individuals to contribute to Initial Coin Offerings (ICOs), a phenomenon that emerged after the blockchain revolution. We conducted both qualitative and quantitative work in this space and present the results of an international survey, including a conjoint experiment. Theoretically, we anchor our study in signaling theory and propose that signal valence (the positive or negative interpretation of a signal) can diverge from signal intent. Specifically, we find that candidate ICO funders with strong FOMO behave predictably irrationally. They are more likely to invest in financially irresponsible projects and are less likely to invest in projects that have received recognition from established media sources or multinationals. While both financial responsibility and stakeholder recognition are ostensibly positive signals of team and project quality, we find that for ICO funders with high FOMO, the valence of these signals changes.

Keywords

Initial coin offering, Fear of missing out, Signaling theory, Conjoint experiment

Discipline

Organizational Behavior and Theory | Portfolio and Security Analysis | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Digital Business

Volume

4

Issue

2

First Page

1

Last Page

13

Identifier

10.1016/j.digbus.2024.100087

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.digbus.2024.100087

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