Was the ICO boom just a sideshow of the Bitcoin and Ether Momentum?
File(s)
Published version
Author(s)
Allen, Franklin
Fatas, Antonio
Weder di Mauro, Beatrice
Type
Journal Article
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.
Date Issued
2022-09
Date Acceptance
2022-08-12
Citation
Journal of International Financial Markets, Institutions and Money, 2022, 80, pp.1-9
ISSN
1042-4431
Publisher
Elsevier BV
Start Page
1
End Page
9
Journal / Book Title
Journal of International Financial Markets, Institutions and Money
Volume
80
Copyright Statement
© 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/).
(http://creativecommons.org/licenses/by/4.0/).
License URL
Identifier
https://www.sciencedirect.com/science/article/pii/S104244312200110X?via%3Dihub
Subjects
1402 Applied Economics
1502 Banking, Finance and Investment
Finance
Publication Status
Published
Article Number
101637
Date Publish Online
2022-08-19