Was the ICO boom just a sideshow of the Bitcoin and Ether Momentum?

【Author】 Allen, Franklin; Fatas, Antonio; di Mauro, Beatrice Weder

【Source】JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY

【影响因子】4.217

【Abstract】We investigate whether the market for ICOs in 2017-2018 and 2021 showed signs of contagion from prices of Bitcoin and Ether. During phases of optimism, ICO daily returns display low correlations with those of Bitcoin or Ether. But when the bubble bursts, correlations jump to very high levels, signaling that the ICO market becomes a sideshow of the cryptocurrency dynamics. We demonstrate that this high correlation was not present during the Nasdaq bubble in the 1990s, signaling that the price dynamics of digital tokens seems to be driven by a common factor, much more than in previous bubbles.

【Keywords】ICOs; Cryptocurrencies; Bubbles; Contagion; Regulation

【发表时间】2022 SEP

【收录时间】2022-10-17

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-市场分析