Are metaverse coins more prone to geopolitical risk than traditional crypto assets?

Rabin K. Jana

International Review of Economics & Finance, 2024, vol. 93, issue PB, 436-447

Abstract: The present research explores the nexus of geopolitical risk (GPR) with metaverse coins and traditional crypto assets. We apply wavelet-based techniques to capture their time-varying relationships and casual nexus at different scales. Based on 776 observations from November 04, 2020, to December 19, 2022, for each time series, we find that GPR does not impact metaverse coins in the short run. Conversely, some of the traditional crypto assets are influenced by the GPR in the short, medium, and longer runs. Metaverse coins are slightly less prone to GPR than traditional crypto assets. The results can be utilized for risk mitigation and investment diversification.

Keywords: Metaverse coin; Cryptocurrency; Geopolitical risk; Wavelet coherence; Nonparametric granger causality (search for similar items in EconPapers)
JEL-codes: C14 C32 D81 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:93:y:2024:i:pb:p:436-447

DOI: 10.1016/j.iref.2024.05.001

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