Can Tweets predict ICO success? Sentiment Analysis for Success of ICO Whitepaper: Evidence from Australia and Singapore Markets

Abstract

Initial coin offerings (ICOs) are a new fundraising method for businesses, companies or entrepreneurs through a smart contract. The ICO fundraising model was one of the most popular FinTechs from 2016 to 2018, as the most supportive tool for startups in countries with limitations on initial public offerings (IPOs). Among ICOs ended in 2018, the leading sectors of funds raised included cryptocurrencies, business platforms, and business service projects. An ICO whitepaper contains primary business data that can assist in decision-making for investment. Market sentiment was used to predict the success of ICOs based in Australia and Singapore markets. Results showed that sentiment analysis on tweets can be used to predict ICO success.