Conducting a SWOT Analysis for Financing Through Initial Coin Offerings (ICO)

Document Type : Science - Research (Islamic Financing Tools)

Authors
Sina Sarvi 1
Mahdi Nouri 2
Mohammad Hosin Gavam 3
1 PhD Student, Financial Management, Department of Financial Management, Faculty of Islamic Studies and Management; Imam Sadiq University, Tehran, Iran
2 Assistant Professor, Faculty of Economics, Tehran University, Tehran, Iran
3 Assistant Professor, Department of Financial Management, Faculty of Islamic Studies and Management; Imam Sadiq University, Tehran, Iran
10.30497/ifr.2021.239864.1579
Abstract
Financing is one of the challenging issues for business owners no matter where they stand in the cycle of organization's life. The reason of failure for most of the newly started businesses (called startups) in their early stages is known to be the lack of cash resources. The problem of finance in Iran, no matter the source of it, whether from capital market or debt market, has had a long history. Initial coin offering could be a solution for this problem that could safely invest the increasing cash flow in the businesses. It was introduced in 2013 as a new method, utilizing the technology capacity of fintech's, and reached its peak in 2017, acquiring a worldwide name. The purpose of this study is to explain the different perspectives to this method which would be suitable for Iran's condition. This has accomplished by using GQR method while conducting semi-structured interviews with 12 experts on the subject. Advantaging from SWAT matrix, this paper attempted to offer a way to inform CEOs on the pros and cons of financing by this new method.
Keywords
Blockchain
ICO
Fintech
Token Sale
Digital Currency
SWOT
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Volume 12, Issue 3 - Serial Number 25
February 2023
Pages 663-694

  • Receive Date 21 November 2020
  • Revise Date 23 February 2021
  • Accept Date 01 April 2021