Cryptocurrency Value and 51% Attacks: Evidence from Event Studies

IF 0.4 Q4 BUSINESS, FINANCE Journal of Alternative Investments Pub Date : 2019-10-30 DOI:10.3905/jai.2019.1.081
Savva Shanaev, Arina Shuraeva, Mikhail Vasenin, M. Kuznetsov
{"title":"Cryptocurrency Value and 51% Attacks: Evidence from Event Studies","authors":"Savva Shanaev, Arina Shuraeva, Mikhail Vasenin, M. Kuznetsov","doi":"10.3905/jai.2019.1.081","DOIUrl":null,"url":null,"abstract":"In this article, an event studies approach is utilized to assess the influence of 51% attacks on proof-of-work (PoW) cryptocurrency prices. The study uses an exhaustive sample of 14 individual attacks on 13 cryptocurrencies. Across multiple event studies techniques, majority attacks on blockchains are consistently shown to immediately decrease corresponding coin prices by 12% to 15%. Significantly negative price response is robust in various event windows. Coin prices do not recover to pre-attack levels one week after the event. There is evidence of pump-and-dump schemes prior to the 51% attack, however the market demonstrates high efficiency after the attacks. 51% attacks are suggested to be a fundamental risk factor for cryptocurrency investments, primarily characteristic of small PoW coins with low hash rates. TOPIC: Currency Key Findings • 51% attacks on Proof-of-Work cryptocurrencies decrease their market prices by 12.60% on average. • The effect is robust to different measurement techniques and in various event windows. • There is evidence of insider trading and “pump-and-dump” schemes prior to the attacks.","PeriodicalId":45142,"journal":{"name":"Journal of Alternative Investments","volume":null,"pages":null},"PeriodicalIF":0.4000,"publicationDate":"2019-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"44","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Alternative Investments","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3905/jai.2019.1.081","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 44

Abstract

In this article, an event studies approach is utilized to assess the influence of 51% attacks on proof-of-work (PoW) cryptocurrency prices. The study uses an exhaustive sample of 14 individual attacks on 13 cryptocurrencies. Across multiple event studies techniques, majority attacks on blockchains are consistently shown to immediately decrease corresponding coin prices by 12% to 15%. Significantly negative price response is robust in various event windows. Coin prices do not recover to pre-attack levels one week after the event. There is evidence of pump-and-dump schemes prior to the 51% attack, however the market demonstrates high efficiency after the attacks. 51% attacks are suggested to be a fundamental risk factor for cryptocurrency investments, primarily characteristic of small PoW coins with low hash rates. TOPIC: Currency Key Findings • 51% attacks on Proof-of-Work cryptocurrencies decrease their market prices by 12.60% on average. • The effect is robust to different measurement techniques and in various event windows. • There is evidence of insider trading and “pump-and-dump” schemes prior to the attacks.
查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
加密货币价值和51%攻击:来自事件研究的证据
在本文中,使用事件研究方法来评估51%的攻击对工作证明(PoW)加密货币价格的影响。该研究使用了对13种加密货币的14次个人攻击的详尽样本。在多个事件研究技术中,对区块链的大多数攻击始终显示会立即将相应的硬币价格降低12%至15%。在不同的事件窗口中,显著的负面价格反应是稳健的。事件发生一周后,硬币价格不会恢复到袭击前的水平。有证据表明,在51%的袭击发生之前,有泵和倾倒方案,但袭击发生后,市场表现出了高效率。51%的攻击被认为是加密货币投资的一个基本风险因素,主要是具有低哈希率的小型PoW硬币的特点。主题:货币关键发现•51%的工作证明加密货币攻击使其市场价格平均下降12.60%。•在不同的测量技术和不同的事件窗口中,效果是稳健的。•有证据表明,在袭击发生之前,存在内幕交易和“抽水和倾倒”计划。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
CiteScore
1.50
自引率
14.30%
发文量
40
期刊介绍: The Journal of Alternative Investments (JAI) provides you with cutting-edge research and expert analysis on managing investments in hedge funds, private equity, distressed debt, commodities and futures, energy, funds of funds, and other nontraditional assets. JAI is the official publication of the Chartered Alternative Investment Analyst Association (CAIA®). JAI provides you with challenging ideas and practical tools to: •Profit from the growth of hedge funds and alternatives •Determine the optimal mix of traditional and alternative investments •Measure and track portfolio performance •Manage your alternative investment portfolio with proven risk management practices
期刊最新文献
Commodity Futures and Trend Inflation Inflation Hedging Potential of Infrastructure Sector and Sub-Sector Returns—Evidence from Emerging Markets Listed Real Estate in a Multi-Asset World: Does It Add Value? Too Much of A Good Thing? Drawbacks of Stressing Measurement of Impact Investing Editor’s Letter
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1