International Review of Financial Analysis 78, p. 101958 .
ISSN/ISBN: Not available at this time. DOI: 10.1016/j.irfa.2021.101958
Abstract: In this paper, we empirically analyse the performance of five gold-backed stablecoins during the COVID-19 pandemic and compare them to gold, Bitcoin and Tether. In the digital assets' ecosystem, gold-backed cryptocurrencies have the potential to address regulatory and policy concerns by decreasing volatility of cryptocurrency prices and facilitating broader cryptocurrency adoption. We find that during the COVID-19 pandemic, gold-backed cryptocurrencies were susceptible to volatility transmitted from gold markets. Our results indicate that for the selected gold-backed cryptocurrencies, their volatility, and as a consequence, risks associated with volatility, remained comparable to the Bitcoin. In addition, gold-backed cryptocurrencies did not show safe-haven potential comparable to their underlying precious metal, gold.
Bibtex:
@article{,
author = {Akanksha Jalan and Roman Matkovskyy and Larisa Yarovaya},
title = {{“Shiny”} crypto assets: A systemic look at gold-backed cryptocurrencies during the {COVID-19} pandemic},
year = {2021},
journal = {International Review of Financial Analysis},
volume = {78},
doi = {10.1016/j.irfa.2021.101958},
}
Reference Type: Journal Article
Subject Area(s): Accounting, Economics