The Economics of Digital Token Cross-Listings

Benedetti, Hugo

doi:10.2139/ssrn.3267392

Cited by 8 publications

(5 citation statements)

References 27 publications

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“…Benedetti and Kostovetsky (2019) and Momtaz (2019) find that initial exchange listings of cryptocurrencies yield positive abnormal returns. Benedetti (2019) and Ante (2019) examine the effects of cryptocurrency cross-listing and reveal similar results for returns. Based on the same data set used in this study, Ante and Meyer (2019) assess the market reaction to ICO cross-listings and the effects of specific cryptocurrency exchanges and liquidity metrics on the returns.…”

Section: Related Literature and Hypothesis Developmentmentioning

confidence: 75%

“…Other findings suggest that the increase in liquidity thanks to a cross-listing attracts liquidity traders competing for order flow (Chowdhry and Nanda 1991). Increased liquidity as an effect of cross-listing is found both for stock markets (Foerster and Karolyi 1999) and cryptocurrency markets (Benedetti 2019). You et al (2013) however show that as the number of cross-listings of an asset increases, positive effects decline.…”

Section: Cross-listingsmentioning

confidence: 96%

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Effects of initial coin offering characteristics on cross-listing returns

Meyer¹,

Ante

2020

Digit Finance

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The low level of regulation and publication requirements in cryptocurrency markets leads to little information on cryptocurrency projects being publicly available. Against the background of high information asymmetry, the interpretation of the available information is all the more important. This paper examines how initial coin offering (ICO) characteristics affect cross-listing returns, i.e. whether or not available information is a valuable market signal of quality. For this purpose, we analyze 250 cross-listings of 135 different tokens issued via ICOs and calculate abnormal returns for specific samples using event study methodology. We find that cross-listing returns are driven by success in terms of token performance and project funding, as well as by jurisdiction-specific characteristics like the extent of regulation and domestic market size. Other characteristics such as the choice or change of blockchain infrastructure, token distribution across investors and the project team, campaign duration and whitepaper characteristics also seem to influence perceived project quality and thus cross-listing returns. The results contribute to the literature on cross-listings, cryptocurrency markets and entrepreneurial finance in the form of ICOs. They also make it possible to interpret the information available on the market and enable investors, project teams and cryptocurrency exchanges to evaluate probable market reactions to cross-listings.

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Section: Related Literature and Hypothesis Developmentmentioning

confidence: 75%

Section: Cross-listingsmentioning

confidence: 96%

Effects of initial coin offering characteristics on cross-listing returns

Meyer¹,

Ante

2020

Digit Finance

View full text Add to dashboard Cite

show abstract

“…To our knowledge, two studies have specifically analyzed such effects, but so far no study has focused solely on ICOs. Benedetti (2019) finds positive listing returns for a sample of 3,625 tokens on 108 exchanges and identifies an increase in trading volume and characteristics like on-blockchain transfer volumes of Ethereumbased tokens. Ante (2019) analyzes 327 cross-listings on 22 exchanges and finds abnormal returns of 5.7% on the listing day and 9.2% over a 7-day event window around the listing.…”

Section: Introductionmentioning

confidence: 92%

“…The introduction of new trading markets by means of cross-listings improves liquidity. Trading volume rises with cross-listings both for stocks (Foerster and Karolyi 1999) and cryptocurrencies (Benedetti 2019). Exposing an asset to multiple markets attracts liquidity traders who compete for order flow (Chowdhry and Nanda 1991).…”

Section: Exchange (Cross-)listingsmentioning

confidence: 99%

“…The ICO phenomenon can be contemplated from various angles, such as the perspective of projects seeking funding (Ante et al 2018), investors looking for financial return (Fisch & Momtaz 2020), society benefiting from a new source of finance for start-ups , or specific industry players, such as cryptocurrency exchanges (Benedetti 2019). Most of the existing studies assume the perspective of projects, investigating the determinants of success.…”

Section: Introductionmentioning

confidence: 99%

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