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Are Cryptocurrency Forks Wealth Creating?

Author

Listed:
  • Bill Hu

    (College of Business, Arkansas State University, Jonesboro, AR 72401, USA)

  • Jonathan Miller

    (EGADE Business School, Tecnológico de Monterrey, Monterrey 64849, Nuevo Leon, Mexico)

Abstract

We find that planned cryptocurrency forks, like voluntary corporate spin-offs, are wealth-creating. Involuntary forks that are forced due to hacks and other problems with the blockchain are not. We find diminishing returns for second-generation forks, alleviating the concern of forking solely for wealth creation.

Suggested Citation

  • Bill Hu & Jonathan Miller, 2023. "Are Cryptocurrency Forks Wealth Creating?," JRFM, MDPI, vol. 16(12), pages 1-13, December.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:12:p:510-:d:1296700
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    References listed on IDEAS

    as
    1. Snehal Banerjee & Ilan Kremer, 2010. "Disagreement and Learning: Dynamic Patterns of Trade," Journal of Finance, American Finance Association, vol. 65(4), pages 1269-1302, August.
    2. Jacques A. Schnabel, 1992. "Small Business Capital Structure Choice," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 2(1), pages 13-21, Fall.
    3. Chemmanur, Thomas J. & Yan, An, 2004. "A theory of corporate spin-offs," Journal of Financial Economics, Elsevier, vol. 72(2), pages 259-290, May.
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