ICO investors impressed by image amid lack of information

Academic study finds attractiveness often beats a plan

ICO investors impressed by image amid lack of information
Steve Randall

Those looking to raise money in an initial coin offering (ICO) online might find investors are more impressed with their suit and a smile rather than their product or plan.

That’s according to a study from the University of Bath which has found that success of ICOs is about how confident the team looks including digital visual cues, such as expressions, poses and clothing.

"Our study showed there is a positive relationship between perceived confidence and the amount of capital raised in ICOs. The results showed that this relationship is not explained by other traits, such as intelligence or attractiveness," said Dr Winifred Huang of the University's School of Management.

The study of more than 500 ICO campaigns found that they often lack comprehensive business information, but that perceived confidence was a winner.

"Overall, when there are more people wearing suits or smiles, investors will receive the signal that this team is more confident. And using black and white images has a positive effect as such images create a uniform visual style and suggest that the team has considered its presentation style and understands the value of communication with potential investors," Huang said.

But those launching an ICO campaign should avoid one often-used pose.

"The crossed-arms-on-the-chest pose, beloved of corporate websites across the globe, does not help to increase investor confidence, at least not in online ICOs," Huang said. Taking a picture too close to the camera also proved to be detrimental.”