Study: Developing Face Appearance Can Increase Crypto ICO Funding By 95 Percent

Study related to initial coin bidding or ICO. (Photo; Doc. Crypto Frontline)

JAKARTA - Crypto early coin offerings (ICO) are one of the popular ways to raise funds for blockchain-based projects. However, did you know that the appearance of crypto ICO team members could have a major effect on investor decisions? A recent study revealed surprising facts about this.

A study conducted by Professor Sinh Toi Moi from the Hanken School of Economics in Helsinki, Finland, on February 8, examined how the facial appearance of crypto ICO team members affected investor confidence. This study uses machine learning to analyze facial features of 5,826 crypto ICOs conducted between 2015 and 2020.

The results show that reliable facial appearances can increase investor funding in crypto ICO by up to 95%. This means that ICO crypto, which has team members with reliable faces, can raise an average of 2.91 million US dollars (IDR 21.9 billion) more than ICO crypto, which has a team member with a less trustworthy face.

The study also suggests that investors may be caught up in behavioral biases called halo effects. Halo effects are a psychological tendency to give a person an overall positive impression based on certain characteristics, such as facial appearances.

While a reliable facial appearance could help crypto ICO get greater funding, that doesn't mean that the crypto ICO will perform well afterward. In fact, the study found that facial confidence correlated negatively with post-ICO token cumulative returns.

This means that investors who believe too much in crypto ICOs with trusted faces tend to be disappointed with the performance of their tokens after the ICO. This can be caused by various factors, such as failing to achieve project goals, not being listed on exchanges, losing jobs, or lack of code development activities.

Professor Toi Moi said his research was in line with previous psychological studies indicating that investors may suffer from behavioral biases and that facial impressions may be misleading. Therefore, investors should be careful and not just rely on facial appearance as a confidence indicator.