Cryptocurrencies and tokens lifetime analysis from 2009 to 2021

dc.contributor.authorGatabazi, Paul
dc.contributor.authorKabera, Gaetan
dc.contributor.authorMba, Jules Clement
dc.contributor.authorPindza, Edson
dc.contributor.authorMelesse, Sileshi Fanta
dc.date.accessioned2022-07-20T14:21:53Z
dc.date.available2022-07-20T14:21:53Z
dc.date.issued2022-03-09
dc.description.abstractThe success of Bitcoin has spurred emergence of countless alternative coins with some of them shutting down only few weeks after their inception, thus disappearing with millions of dollars collected from enthusiast investors through initial coin offering (ICO) process. This has led investors from the general population to the institutional ones, to become skeptical in venturing in the cryptocurrency market, adding to its highly volatile characteristic. It is then of vital interest to investigate the life span of available coins and tokens, and to evaluate their level of survivability. This will make investors more knowledgeable and hence build their confidence in hazarding in the cryptocurrency market. Survival analysis approach is well suited to provide the needed information. In this study, we discuss the survival outcomes of coins and tokens from the first release of a cryptocurrency in 2009. Non-parametric methods of time-to-event analysis namely Aalen Additive Hazards Model (AAHM) trough counting and martingale processes, Cox Proportional Hazard Model (CPHM) are based on six covariates of interest. Proportional hazards assumption (PHA) is checked by assessing the Kaplan-Meier estimates of survival functions at the levels of each covariate. The results in different regression models display significant and non-significant covariates, relative risks and standard errors.Among the results, it was found that cryptocurrencies under standalone blockchain were at a relatively higher risk of collapsing. It was also found that the 2013–2017 cryptocurrencies release was at a high risk as compared to 2009–2013 release and that cryptocurrencies for which headquarters are known had the relatively better survival outcomes. This provides clear indicators to watch out for while selecting the coins or tokens in which to invest.en_US
dc.description.departmentMathematics and Applied Mathematicsen_US
dc.description.librariandm2022en_US
dc.description.urihttps://www.mdpi.com/journal/economiesen_US
dc.identifier.citationPaul Gatabazi, Gaëtan Kabera, Jules Clement Mba, Edson Pindza, and Sileshi Fanta Melesse. 2022. Cryptocurrencies and Tokens Lifetime Analysis from 2009 to 2021. Economies 10: 60. https://doi.org/10.3390/economies10030060.en_US
dc.identifier.issn2227-7099 (online)
dc.identifier.other10.3390/economies10030060
dc.identifier.urihttps://repository.up.ac.za/handle/2263/86332
dc.language.isoenen_US
dc.publisherMDPIen_US
dc.rights© 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license.en_US
dc.subjectCryptocurrencyen_US
dc.subjectBlockchainen_US
dc.subjectSurvival functionen_US
dc.subjectRisken_US
dc.subjectWeighten_US
dc.subjectHazard ratioen_US
dc.subjectInitial coin offering (ICO)en_US
dc.titleCryptocurrencies and tokens lifetime analysis from 2009 to 2021en_US
dc.typeArticleen_US

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