Does cryptocurrency pricing response to regulatory intervention depend on underlying blockchain architecture?

【Author】 Meegan, Andrew; Corbet, Shaen; Larkin, Charles; Lucey, Brian

【Source】JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY

【影响因子】4.217

【Abstract】Blockchain technology appears to be ready to revolutionise a broad number of industries. However, the blockchain itself contains a number of inefficiencies and areas for improvement, namely: transaction fees and transaction speeds. Directed acyclic graphs (DAGs) address, and improve on these inefficiencies and a number of digital currencies utilising this technology have already begun to appear. This paper provides an explanation of the technology behind DAG-based assets, while identifying and highlighting strategic advantages that DAGs possess over traditional blockchains. We conduct an EGARCH volatility analysis of a range of blockchain-based and DAG-based cryptocurrencies in the aftermath of a range of market shocks, taking the form of regulatory announcements such as bans and broad restrictions for cryptocurrencies. We find that DAG-based assets become increasingly responsive to market shocks as they mature. Such behaviour mirrors that of established cryptocurrencies such as Bitcoin, Ethereum and Litecoin, providing evidence that DAG-based cryptocurrencies now share similar characteristics to traditional blockchainchain based products. (C) 2020 The Author(s). Published by Elsevier B.V.

【Keywords】Digital currencies; Cryptocurrency; Blockchain; Directed acyclic graphs; EGARCH

【发表时间】2021 JAN

【收录时间】2022-01-02

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