 Spillover analysis on NFTs, NFT-affiliated tokens and NFT submarketsKin-Hon Ho, Monica Law, Yun Hou and Tse-Tin Chan Finance Research Letters, 2024, vol. 60, issue C Abstract: Since the beginning of 2021, non-fungible tokens (NFTs) have been in the spotlight. Cryptocurrencies play a vital role in the NFT market because they can be used to purchase NFTs. Specifically, the native cryptocurrency associated with the corresponding NFT is called an NFT-affiliated token. One may be interested in exploring the relationship between NFTs and their associated tokens. Through spillover analysis, we found limited spillovers between these two asset classes. In addition, there are multiple submarkets within an NFT and multiple submarkets of the same type across different NFTs. We conducted spillover analyses to examine the extent of shock transmission among these submarkets. Our results show that NFTs are distinct from cryptocurrencies and their associated tokens. Furthermore, there is limited spillover between submarkets belonging to the same NFT and across different NFTs. This demonstrates that effective risk management can be achieved through diversification by adding NFT-affiliated tokens and submarkets to a non-diversified NFT portfolio. Keywords: Cryptocurrency; Non-fungible token (NFT); NFT-affiliated token; NFT submarket; Spillover (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323009704 DOI: 10.1016/j.frl.2023.104598 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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