The influence of ChatGPT on artificial intelligence related crypto assets: Evidence from a synthetic control analysis

Aman Saggu and Lennart Ante

Finance Research Letters, 2023, vol. 55, issue PB

Abstract: The introduction of OpenAI's large language model, ChatGPT, catalyzed investor attention towards artificial intelligence (AI) technologies, including AI-related crypto assets not directly related to ChatGPT. Utilizing the synthetic difference-in-difference methodology, we identify significant "ChatGPT effects,” with AI-related crypto assets experiencing average returns ranging between 10.7% and 15.6% (35.5% to 41.3%) in the one-month (two-month) period after the ChatGPT launch. Furthermore, Google search volumes, a proxy for attention to AI, emerged as critical pricing indicators for AI-related crypto assets post-launch. We conclude that investors perceived AI-related crypto assets as possessing heightened potential or value after the launch, resulting in higher market valuations.

Keywords: ChatGPT; Artificial intelligence; Cryptocurrencies; Market efficiency (search for similar items in EconPapers)
JEL-codes: C21 G12 G14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Working Paper: The Influence of ChatGPT on Artificial Intelligence Related Crypto Assets: Evidence from a Synthetic Control Analysis (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003653

DOI: 10.1016/j.frl.2023.103993

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