| dc.description.abstract | With the rise of blockchain technology and cryptocurrency in recent years, a new way of fundraising, initial coin offering (ICO), has emerged. However, a lack of precise regulation and strict disclosure requirement have led to a huge information asymmetry between fundraisers and invertors, which influences the possibility of ICO success. While prior studies examine more on fundraisers automatically disclose more information without any regulations, which led to the decrease of information asymmetry and increase the possibility of fundraising success. However, the blockchain technology used in ICOs is considered an unfamiliar area to investors. If the white paper is difficult to understand, the information will not be used effectively, which will decrease the possibility of ICO fundraising success. Thus, this study focuses more on the impact of whitepaper readability on ICO. Using a sample consisting of 607 ICO projects from January 2017 to December 2020, I find that ICOs that disclose higher readability on whitepaper more likely to succeed. Further, I discuss whether the amount of information disclosed in the white paper affects the relationship between readability and the success of fundraising. Overall, the study provides evidence that disclosing more information and increasing the readability on the whitepaper can reduce information asymmetry between fundraisers and investors, leading investors to more comprehension of tokens and a higher possibility of successful fundraising through ICO. | en_US |