{"id":89709,"date":"2024-02-09T21:59:39","date_gmt":"2024-02-10T02:59:39","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=89709"},"modified":"2024-02-09T21:59:42","modified_gmt":"2024-02-10T02:59:42","slug":"the-key-to-making-more-money-during-an-ico-look-trustworthy","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89709","title":{"rendered":"The Key to Making More Money During an ICO? Look Trustworthy"},"content":{"rendered":"
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A February 8 study from the Hanken School of Economics in Helsinki, Finland, has unveiled that a trustworthy appearance could boost investor funding in crypto initial coin offerings (ICOs) by an impressive 95%.<\/p>\n

For context, ICOs typically refer to the raising of capital required to launch a new cryptocurrency-related product or service, similar to an initial public offering (IPO).<\/p>\n

How Crypto ICO Team Members\u2019 Looks Influence Investor Decisions<\/h2>\n

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Using machine learning, Professor Sinh Toi Moi examined the facial features of individuals involved in 5,826 ICOs, seeking insights into how these traits influence perceived trustworthiness.<\/p>\n

The results revealed that the \u201caverage amount raised by crypto ICOs in the top trustworthiness quintile is approximately $2.91 million (95%) higher than the average amount raised by crypto ICOs in the bottom trustworthiness quintile.\u201d<\/p>\n

The study suggests that \u201cinvestors\u2019 perception of facial trustworthiness may be misleading, however, and investors may suffer from a behavioral bias, namely the halo effect.\u201d<\/p>\n

The halo effect is a psychological tendency wherein people associate an overall favorable impression of an individual based on certain positive characteristics they possess.<\/p>\n

The Downside of Trustworthiness<\/h2>\n

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Despite the positive effect facial trustworthiness had for certain members of the studied crypto ICOs, it did not always end positively for investors.<\/p>\n

The study revealed that \u201cfacial trustworthiness is negatively associated with the post-ICO token cumulative return,\u201d including \u201csurvival, listing on exchange, employment,\u201d and \u201ccode development activity.\u201d The correlation suggests that investors who overvalued crypto ICOs during initial fundraising periods attempt to \u201csee their tokens and reverse their overinvestments.\u201d<\/p>\n