Cryptocurrency comovements and crypto exchange movement: The relocation of Binance

Mustafa Disli; Fatima Abd Rabbo; Thibault Leneeuw; Ruslan Nagayev

doi:10.1016/j.frl.2022.102989

Cryptocurrency comovements and crypto exchange movement: The relocation of Binance

Mustafa Disli^*
, Fatima Abd Rabbo
, Thibault Leneeuw
, Ruslan Nagayev

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

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.

Original language	English
Article number	102989
Number of pages	7
Journal	Finance Research Letters
Volume	48
DOIs	https://doi.org/10.1016/j.frl.2022.102989
Publication status	Published - 21 May 2022

Keywords

Altcoins
Binance
Bitcoin
Comovement
Exchange relocation

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10.1016/j.frl.2022.102989

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title = "Cryptocurrency comovements and crypto exchange movement: The relocation of Binance",

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.",

keywords = "Altcoins, Binance, Bitcoin, Comovement, Exchange relocation",

author = "Mustafa Disli and \{Abd Rabbo\}, Fatima and Thibault Leneeuw and Ruslan Nagayev",

note = "Publisher Copyright: {\textcopyright} 2022 The Author(s)",

year = "2022",

month = may,

day = "21",

doi = "10.1016/j.frl.2022.102989",

language = "English",

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T1 - Cryptocurrency comovements and crypto exchange movement

T2 - The relocation of Binance

AU - Disli, Mustafa

AU - Abd Rabbo, Fatima

AU - Leneeuw, Thibault

AU - Nagayev, Ruslan

PY - 2022/5/21

Y1 - 2022/5/21

N2 - 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.

AB - 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.

KW - Altcoins

KW - Binance

KW - Bitcoin

KW - Comovement

KW - Exchange relocation

UR - https://www.scopus.com/pages/publications/85130619699

U2 - 10.1016/j.frl.2022.102989

DO - 10.1016/j.frl.2022.102989

M3 - Article

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SN - 1544-6123

VL - 48

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 102989

ER -

Cryptocurrency comovements and crypto exchange movement: The relocation of Binance

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Keywords

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