Initial Coin Offerings and Herd Behavior
The correlation between amount of capital raised in initial coin offerings (ICOs) and the price of bitcoin during 2017 and 2018 is a blatant displayal of herd behavior related to blockchain technologies like cryptocurrency. ICOs serve as a method of fundraising whereby the seeking project trades their underlying token for bitcoin or ether. Herd behavior is a widely accepted phenomenon where a group of people act collectively without a central source of direction. This means that the individual mimics group behavior, rational or not The first reason for such a behavior is linked to social pressure and the desire to Continue reading Initial Coin Offerings and Herd Behavior