NFTs versus conventional cryptocurrencies: A comparative analysis of market efficiency around COVID-19 and the Russia-Ukraine conflict.
In: Quarterly Review of Economics & Finance, Jg. 95 (2024-06-01), S. 126-151
Online
academicJournal
This paper examines the efficiency of the market for non-fungible tokens (NFTs) against the backdrop of the market for fungible tokens (FTs) that includes Bitcoin and Ethereum. We focus on two important shocks: the outbreak of COVID-19 and the Russia-Ukraine conflict. To this end, we employ martingale difference sequence and conditional heteroscedasticity estimation techniques. We find that the efficiency of both markets fluctuates in time and the aforementioned shocks have a profound effect on FTs and NFTs. More specifically, we find that the effect of COVID-19 is heterogeneous for both markets, whereas that of the Russian invasion of Ukraine is homogenous for NFTs but heterogeneous for FTs. • Market efficiency of the fungible (FT) and non-fungible tokens (NFT) is analyzed. • Two large exogenous shocks to the cryptocurrency market are examined. • Shock induced by COVID-19 has homogenous effect on market efficiency of FT and NFT. • Shock induced by Russia-Ukraine conflict has heterogenous effect on both markets. [ABSTRACT FROM AUTHOR]
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NFTs versus conventional cryptocurrencies: A comparative analysis of market efficiency around COVID-19 and the Russia-Ukraine conflict.
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Autor/in / Beteiligte Person: | Okorie, David Iheke ; Bouri, Elie ; Mazur, Mieszko |
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Zeitschrift: | Quarterly Review of Economics & Finance, Jg. 95 (2024-06-01), S. 126-151 |
Veröffentlichung: | 2024 |
Medientyp: | academicJournal |
ISSN: | 1062-9769 (print) |
DOI: | 10.1016/j.qref.2024.03.001 |
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