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Research indicated that incorporating images of smiling individuals in marketing materials can enhance the funds raised during an initial coin offering (ICO) by approximately $2.91 million.
Professor Sinh Thoi Mai from the Hanken School of Economics released findings from a study entitled “The Value of a Smile.” This paper examined the relationship between the presence of smiling individuals in images and the total funds raised in an ICO.
The research revealed that visuals featuring smiles lead investors to develop an irrational sense of “trust” in the project. Consequently, initiatives that incorporate a “smile” secure 95% more funding during ICOs. The study evaluated 5,826 ICOs that collectively raised around $24 billion. On average, the financial outcomes for each project utilizing the “power of a smile” were elevated by about $2.91 million.
The researcher points out that individual investors are more influenced by the irrational appeal of a “smile” compared to institutional investors. Additional factors that contribute to this include:
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- incomplete project information disclosure;
- the lack of a project code on GitHub;
- confusing official documentation;
- ICOs held in regions with low levels of mutual trust among locals.
The paper proposes that the trust generated by “smiles” does not impact the actual return on assets following an ICO. Furthermore, “facial trustworthiness” may have a detrimental effect. The inflated asset values frequently result in a rapid sell-off after the ICO, leading to predominantly negative price movements for the tokens of such projects within three months of the commencement of exchange trading.
One of the findings is that investors who are less technically proficient and possess a limited understanding of project analysis for investment tend to seek other “meaningful” indicators, such as a trustworthy smile in an image.
CP Media has created a “Checklist: Analyzing Crypto Projects for Investment” designed to assist investors in focusing on more significant indicators than a smile in a photograph.
Сообщение Smiling Helps Raise 95% More Funds in ICOs появились сначала на CoinsPaid Media.
