Abstract
Disruption and shutdown of exchanges frequently happen in the cryptocurrency market, though its potential impacts are relatively under-investigated due to several empirical challenges. This study employs 20-h of service interruption on October 15th at Upbit, the dominant cryptocurrency exchange in Korea, as an exogenous shock to examine the effect of unexpected service interruption at the exchange on cryptocurrency market. Event study estimation using price data from Binance, the largest cryptocurrency exchange globally, shows the sharp and negative reactions to cryptocurrencies mostly traded at Upbit. Major currencies such as Bitcoin and Ethereum also presented limited reactions, implying that service interruption could be interpreted as vulnerability of overall cryptocurrencies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
