Data released through an academic study between researchers from Chile and Colombia concluded that involving women in projects related to cryptocurrency in their early stages is beneficial for their funding.
The research was carried out by three academics, two belonging to the College of Higher Studies of Administration of Colombia and the third academic from the Faculty of Economics at the University of Talca in Chile, and the data suggests that involving women in crypto projects creates more trust among investors.
In today’s changing world, inclusion should be a constant in everything we do, but reality tells us that this is not entirely true. Indeed, Studies show that women in the crypto world have been sidelined in countless projectsIn fact, a PwC study shows that women struggle to get promotions in financial services companies despite being structurally equal.
As this is the perspective of work reality on a global scale, the United Nations has included gender diversity in the Sustainable Development Goals for 2030 as part of the issues to be resolved this year. In this context, The researchers assumed the ICOs. The study published in the journal Sustainability is called “Signal value through gender-specific diversity: Evidence of the first issue of coins”. .TO
ICOs (Initial Coin Offering), in which women are included in their organizational, management or administrative structure, tend to create more trust among investorsThe study concludes that the presence of women in these key positions creates trust, which is essential for any economic project.
Christian Pinto, professor in the Faculty of Economics at Talca University, and Alexander Guzmány María Andrea Trujillo, researcher at the College of Higher Studies in Administration of Colombia, examined the extent of women’s influence in these types of projects.
Creating new currencies to fund projects is a widely used method in the cryptographic world. It has also been used for fraud, some other projects have fallen by the wayside, and many others have sprung up. The study suggests that when women hold relevant positions as founders related to legal, finance, or accounting, they create a level of trust that allows investors to delve deeper into the proposed project.
To arrive at this conclusion, the researchers took a database of 875 ICOs from 2017 to 2019 and found in that database that the participation of women in these projects was very low. In fact, the total number of people involved in this 875 ICO is 45,917, of which 86% are male and only 14% are female.
The responsibilities under these initial bid projects were deployed in this universe, and the data showed that only 6% of the women involved are founding members. 4% are women with management positions (CEO) within ICOs. 22% of the women involved have financial or legal positions within the projects. In marketing positions 32% are occupied by women, 8% are programmers.
The study shows that: “Our results also agree with the notion that women run entrepreneurial businesses more effectively and that women who respect ethical values and are less prone to fraud reduce the likelihood of opaque information ICOs becoming fraud”?
The study concludes by stating that: Our results help explain another critical determinant of ICO success. In particular, we provide novel evidence of how women’s participation reduces investor uncertainty when investing in unregulated ICOs, and document a previously unknown effect of gender diversity in corporate finance and technology. Our study has implications for financial practices, particularly cryptocurrency investors and entrepreneurial companies running ICOs. ICO market participants should be aware of the value of gender diversity on the team to facilitate fundraising, risk reduction, project quality improvement, and long-term survival rates for a company.