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Cryptocurrency comovements and crypto exchange movement: The relocation of Binance

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  • Disli, Mustafa
  • Abd Rabbo, Fatima
  • Leneeuw, Thibault
  • Nagayev, Ruslan

Abstract

Binance, the largest cryptocurrency exchange by traded value, relocated from Hong Kong (origin market) to Malta (destination market). This study exploits this relocation event by examining the comovement of Binance's native token with the native tokens of other cryptocurrency exchanges in the origin and destination markets. Using multivariate regression analysis, our results show that Binance experienced a significant decline in comovement with its origin market after moving to Malta. The results are less evident for the destination market; however, an increase in comovement immediately after the relocation of Binance is notable.

Suggested Citation

  • Disli, Mustafa & Abd Rabbo, Fatima & Leneeuw, Thibault & Nagayev, Ruslan, 2022. "Cryptocurrency comovements and crypto exchange movement: The relocation of Binance," Finance Research Letters, Elsevier, vol. 48(C).
    • Handle: RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002379
    DOI: 10.1016/j.frl.2022.102989
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    References listed on IDEAS

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    More about this item

    Keywords

    Exchange relocation; Binance; Altcoins; Bitcoin; Comovement;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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