Research Title: Initial Coin Offerings Versus Equity Financing Strategies Under Cournot Competition

Authors: Chen Zhiyuan (corresponding author), Gong Qiaoyun, Zhou Jianhong

Journal: IEEE Transactions on Engineering Management, Volume 73, 2026

Summary:

This study compares Initial Coin Offerings (ICOs) with traditional equity financing in competitive product market environments using Cournot competition game theory models. ICOs offer global investor access, decentralized governance, and lower transaction costs, but their performance in competitive markets lacks systematic research.

Key Findings:

1. Optimal financingchoice depends heavily on market structure

   
   

2. Higher product substitutability and more intense competition widen utility gaps between financing methods, strengthening dominance of superior financing strategies

   
   

3. For risk-averse firms or those in low-innovation, high-substitution industries (like manufacturing and utilities), equity financing advantages include risk sharing and operational flexibility

   
   

4. ICOs suit innovation-driven firms (like DeFi and NFT projects) due to incentive alignment and reduced equity dilution

   
   

Implications: Provides management insights for firms choosing financing mechanisms in competitive environments, enhancing understanding of token *** mechanisms in modern capital markets.

Journal: IEEE Transactions on Engineering Management(B+ journal under Wuhan

University Economics and Management School grading scheme)

Authors: Gong Qiaoyun (Wuhan University doctoral student), Zhou Jianhong (Wuhan University master's student)

Link: //ieeexplore.ieee.org/document/11367306