2021
DOI: 10.1007/s10203-021-00323-0
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Cross-listings of blockchain-based tokens issued through initial coin offerings: Do liquidity and specific cryptocurrency exchanges matter?

Abstract: Initial coin offerings (ICOs) represent a novel funding mechanism where digital tokens are issued on the blockchain and sold to investors. One major reason for the success of this financing model is the fact that the issued tokens can immediately be traded on secondary markets. This event study analyzes 250 exchange cross-listings of 135 different tokens issued through ICOs on 22 cryptocurrency exchanges. We find significant abnormal returns of 6.51% on the listing day and 9.97% over a seven-day window around … Show more

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Cited by 8 publications
(3 citation statements)
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“…Perhaps the liquidity risk prediction and identification, liquidity creation, and resource fragility point out the liquidity risk because detecting the factor always influences market liquidity with the help of network-based computational techniques [53]. To determine the consistency index of liquidity failures during a following systemic occasion [27].…”
Section: Proposed Liquidity Crisis System Modelmentioning
confidence: 99%
“…Perhaps the liquidity risk prediction and identification, liquidity creation, and resource fragility point out the liquidity risk because detecting the factor always influences market liquidity with the help of network-based computational techniques [53]. To determine the consistency index of liquidity failures during a following systemic occasion [27].…”
Section: Proposed Liquidity Crisis System Modelmentioning
confidence: 99%
“…Using Bitcoin as a key construct for cryptocurrency, the studies of Ante [89] found that trading volumes significantly impacted on the liquidity and market returns from cross-listings. Furthermore, when considered alongside market capitalization, they engender higher market liquidity thus encouraging holders to consider sell-offs for profit taking [90]. Putting cryptocurrencies on new market frontiers can enhance liquidity of the underlying assets while concurrently reducing the associated cost of capital.…”
Section: Cryptocurrencies and Market Liquiditymentioning
confidence: 99%
“…The novel funding mechanism of initial coin offerings (ICOs), where digital tokens are issued and sold to investors, is the subject of research of Ante and Meyer (2021). In particular, they investigate the price effects of 250 cross-listing events of 135 individual tokens and possible abnormal returns when they are immediately traded on secondary markets.…”
Section: Special Issue Contributionsmentioning
confidence: 99%