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The forking effect
DOI:10.1016/j.qref.2025.102090.png)
Abstract
En 中文
• Introduces the novel concept of the forking effect in the cryptocurrency market, specifically analyzing its financial impact on Bitcoin. • Demonstrates that forking events do not significantly affect the parent coins returns, suggesting investor neutrality towards these technological changes. • Reveals that forking events lead to a substantial and sustained rise in parent coins volatility, with elevated levels persisting for three days post-event. • Finds that simultaneous forking events do not further increase parent coin’s volatility, indicating that the uncertainty from a single fork is not amplified by multiple forks on the same day.
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