Publications
TUM FinTech Research Papers
TUM FinTech Research Papers provides an overview of state-of-the-art research results. Some of the papers are pre-peer-review. For this reason, we invite critical comments and hope to spur a constructive debate.
Peer-reviewed publications
Working Paper
2023
Cybercrime on the Ethereum Blockchain
Paul P. Momtaz, Lars Hornuf, Rachel J. Nam and Ye Yuan
TUM FinTech Working Paper
We propose a taxonomy of cybercrime on the Ethereum blockchain and examine how cybercrime impacts victims’ risk-taking and returns. Our difference-in-differences analysis of a sample of victims and matched non-victims suggests that victims increase their long-term total risk-taking and earn lower risk-adjusted returns in the post-cybercrime period. Victims’ long-term total risk-taking increases because they increase …
Working Paper
2023
The Financial and Non-Financial Performance of Token-Based Crowdfunding: Certification Arbitrage, Investor Choice, and the Optimal Timing of ICOs
Niclas Dombrowski, Wolfgang Drobetz, Lars Hornuf and Paul P. Momtaz
TUM FinTech Working Paper
What role does the selection of an investor and the timing of financing play in initial coin offerings (ICOs)? We investigate the operating and financial performance of ventures conducting ICOs with different types of investors at different points in the ventures’ life cycle. We find that, relative to purely crowdfunded ICO ventures, institutional investor-backed ICO …
Working Paper
2023
Emotions in New Venture Teams: Affects as Signals, Emotional Diversity, and Valuation Effects in Initial Coin Offerings (ICOs)
Paul P. Momtaz
TUM FinTech Working Paper
New Venture Teams’ (NVTs’) collective emotions impact startup valuations through their intensity and diversity. I identify NVTs’ affective traits with artificial emotional intelligence by tracking 2,520 individuals across 165 NVTs during their Initial Coin Offerings (ICOs). The level of NVTs’ negative affects correlates with lower valuations, while within-NVT emotional diversity has a value-increasing effect. Intuitively, …
Working Paper
2022
Decentralized Finance, Crypto Funds, and Value Creation in Tokenized Firms
Douglas Cumming, Niclas Dombrowski, Wolfgang Drobetz and Paul P. Momtaz
TUM FinTech Working Paper
Crypto funds (CFs) represent a novel investor type in entrepreneurial finance. CFs intermediate Decentralized Finance (DeFi) markets by pooling contributions from crowd investors and investing in tokenized startups, combining venture- and hedge-style investment strategies. We compile a unique dataset combining token-based crowdfunding (Initial Coin Offering, ICO) data with proprietary performance data of CFs. CF backed …
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Working Paper
2022
Is Decentralized Finance (DeFi) Efficient?
Paul P. Momtaz
TUM FinTech Working Paper
This paper examines the efficiency of the Initial Coin Offering (ICO) market through a search theoretical lens. Search intensity associated with the process of identifying valuable startups is increasing in market granularity. Blockchain technology increases market granularity because asset tokenization lowers entry barriers. Lower-end entrants, however, increase aggregate search intensity but may lack search skills. …