Exploring the LAS-VICT principle of cryptocurrency exchanges: a belief–action–outcome perspective
Cheuk Hang Au et al.
Abstract
Purpose Cryptocurrency exchanges operate in a hyper-volatile, “wild west” environment, fundamentally challenging existing theories of FinTech success that were built for stable markets. The literature lacks a framework to explain how firms thrive amidst such extreme regulatory ambiguity and institutional distrust. This study resolves this theoretical puzzle by developing a new principle for success in nascent, high-stakes digital ecosystems. Design/methodology/approach We conduct a multiple-case study of 14 leading cryptocurrency exchanges. Using the belief–action–outcome (BAO) logic as an analytical guide, we deconstruct the strategic actions that separate successful exchanges from failures, synthesising them into a new, empirically grounded framework. Findings We propose the LAS-VICT principle, a new set of seven critical success factors (CSFs): (1) low user burden, (2) high asset liquidity, (3) scalability, (4) variety, (5) innovativeness, (6) compliance sensitivity and (7) transparency. This framework advances FinTech theory by demonstrating that in low-trust environments, success is less about simple market adaptation and more about mastering a dynamic interplay between navigating volatility, managing complex compliance and actively manufacturing trust. Originality/value This study is the first to offer a comprehensive theoretical framework for success in the crypto-exchange sector. By moving beyond the limitations of existing models, the LAS-VICT principle provides a powerful new lens for scholars, managers and regulators to understand and foster sustainable growth in the next wave of disruptive, trust-deficient digital economies, with cryptocurrencies being a dominating part.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.