SURVIVAL OF THE FITTEST: A NATURAL EXPERIMENT FROM CRYPTO EXCHANGES

AYSAN A. H. M. E. T. F. A. R. U. K., KHAN A. S. A. D. U. L. I. S. L. A. M., TOPUZ H. U. M. E. Y. R. A., TUNALI A. H. M. E. T. S. E. M. I. H.

SINGAPORE ECONOMIC REVIEW, 2021 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume:
  • Publication Date: 2021
  • Doi Number: 10.1142/s0217590821470020
  • Journal Name: SINGAPORE ECONOMIC REVIEW
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, Public Affairs Index
  • Keywords: Stock market universality, cryptocurrency exchanges, distributed ledger, Binance, TIME-SERIES, COINTEGRATION, TESTS
  • Middle East Technical University Affiliated: Yes

Abstract

This paper explores the applicability of universal cryptocurrency exchange by analyzing crypto exchanges of Binance, Latoken, Kucoin and Qash, which also have their own cryptocurrencies in the crypto market. Results of the recursive Johansen cointegration test proved that even though all of the cryptocurrencies have cointegration among each other, Binance positively disassociated itself from the others after it moved to Malta on 23 March 2018. Based on the daily prices of cryptocurrencies over the period from 6 November 2017 to 10 November 2019, taken from coinmarketcap, we conclude that Binance can be considered as a survival of the fittest among all of the crypto exchanges in this natural experiment.