Choosing Solitude in Turmoil, Herding in the Decentralized Finance (DeFi) Token Market: An International Perspective

• 영문명: Choosing Solitude in Turmoil, Herding in the Decentralized Finance (DeFi) Token Market: An International Perspective
• 발행기관: 한국유통과학회
• 저자명: Rasim OZCAN Asad ul Islam KHAN Murat TURGUT Ayuba NAPARI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 9 No.9, 105~114쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.10.31

영문 초록

Financial markets have long been known to be prone to behavioral biases. One such behavioural bias that is consequential yet pervasive in financial markets is the herd effect. The objective of this study is to determine whether or not there exist herd behaviour in the new and bourgeoning Decentralized Finance (DeFi) Tokens market. This is accomplished by using daily returns of 22 DeFi tokens from January 29, 2017 to August 19, 2021, and the Cross-sectional Absolute Deviation (CSAD) of market returns to capture herd behavior. The results fail to provide any evidence of herding in the DeFi token market on bullish days, that is days for which the average market returns is positive. For bearish days however, that is days for which the market returns is negative, our empirical findings point to the presence of adverse herding in the DeFi token market. This phenomenon can be explained to some extent by the investor composition of the DeFi market. The DeFi token space is a growth market dominated by experts and/or enthusiasts who are insulated against the temptation and panic of negative market swings by the level of market and technical information they possess on the assets they invest.

목차

1. Introduction

2. Literature Review

3. Methodology

4. Data

5. Results and Discussion

6. Conclusion

References

키워드

Crypto Currency DeFi Token Market Herding Behavioral Economics Behavioral Finance