| Abstract [eng] |
The primary aim of this master’s thesis is to examine how ICO project popularity, risk score, and exchange type influence the extent of financial crimes, as well as to provide practical recommendations for mitigating risks in this domain. The relevance of the research is underscored by the rapid growth of the cryptocurrency market and the abundance of ICO projects, coupled with insufficient regulatory frameworks that create opportunities for financial crimes. High-profile cases such as "Onecoin" and "Squid Game Token" exemplify the risks associated with these financial innovations, often resulting in significant losses for investors. The thesis focuses on analyzing three key variables—popularity, risk score, and exchange type through a comprehensive review of scientific literature and an empirical study. The literature review highlights the significance of decentralized ecosystems and the main factors influencing financial crimes in ICO projects, drawing on works by Adhami et al. (2018), Karpenko et al. (2021), and Agarwal et al. (2023). This section also discusses how decentralized and centralized exchanges affect the transparency and credibility of projects. The empirical study, grounded in statistical methods, was designed to identify the relationship between these variables and the funds raised by projects, treating this as an indicator of the scale of financial crime. The research findings indicate that ICO projects with high risk scores often attract larger investments but are also more prone to criminal activities. This can be attributed to the perception that high-risk score projects appear more reliable to investors, leading to larger investment amounts in the pursuit of substantial returns. Based on the results, recommendations have been provided for investors and companies to mitigate risks and enhance transparency in the ICO market. It is emphasized that a comprehensive project analysis process, including the evaluation of risk scores, could help reduce the likelihood of financial crimes and increase market reliability. |
