From code to market: Network of developers and correlated returns of cryptocurrencies

【Author】 Lucchini, Lorenzo; Alessandretti, Laura; Lepri, Bruno; Gallo, Angela; Baronchelli, Andrea

【Source】SCIENCE ADVANCES

【影响因子】14.957

【Abstract】Code is law is the founding principle of cryptocurrencies. The security, transferability, availability, and other properties of crypto-assets are determined by the code through which they are created. If code is open source, as is customary for cryptocurrencies, this would prevent manipulations and grant transparency to users and traders. However, this approach considers cryptocurrencies as isolated entities, neglecting possible connections between them. Here, we show that 4% of developers contribute to the code of more than one cryptocurrency and that the market reflects these cross-asset dependencies. In particular, we reveal that the first coding event linking two cryptocurrencies through a common developer leads to the synchronization of their returns. Our results identify a clear link between the collaborative development of cryptocurrencies and their market behavior. More broadly, they reveal a so-far overlooked systemic dimension for the transparency of code-based ecosystems that will be of interest for researchers, investors, and regulators.

【Keywords】

【发表时间】2020 DEC

【收录时间】2022-01-02

【文献类型】实证数据

【主题类别】

区块链应用-虚拟经济-加密货币