Readability of token whitepaper and ICO first-day return

We study the association between readability of the ICO whitepaper and the offering’s first-day return. Using data from the four largest tokens exchanges in Asia, we find that an ICO whitepaper narrative with more readable disclosures is likely to result in a higher initial return for ICO investors. •Initial coin offering (ICO) returns are affected by whitepaper disclosure quality.•An ICO whitepaper proves to be a crucial information source for ICO investors.•Higher readability of the ICO whitepaper is likely to result in a higher ICO first-day return.