 The entry and exit dynamics of the cryptocurrency marketResearch in International Business and Finance, 2021, vol. 58, issue C Abstract: This paper presents an analysis of the entry and exit dynamics of the cryptocurrency market that focuses on the growth of initial coin offerings during 2015–2020. We used two different datasets: one includes long-lived cryptocurrencies, while the other includes the whole cryptocurrency system at our disposal–that is, it considers the entering and exiting cryptocurrencies. Comparing the dynamics between both datasets with the index cohesive force approach, we assessed how the growth of the initial coin offerings and the exiting cryptocurrencies affected the connectedness of the market. Our results show that the expansion of the cryptocurrency system gave rise to a strong collective movement during 2018–2019. Afterwards, the group pressure, due to the bubble of the initial coin offerings, decreased in favour of the largest cryptocurrencies. Lastly, we observed changes in the hierarchical order of the most influential cryptocurrencies. In particular, Ethereum became the most influential cryptocurrency, at the detriment of Bitcoin. Keywords: Bitcoin; Cryptocurrency; Index cohesive force; Initial coin offering (ICO); Diversification; Market sentiment; Correlations (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:riibaf:v:58:y:2021:i:c:s0275531921001252 DOI: 10.1016/j.ribaf.2021.101504 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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