Loading...
Understanding the FTX exchange collapse: A dynamic connectedness approach
Akyildirim, Erdinc Conlon, T. Corbet, S. Goodell, J.W.
Akyildirim, Erdinc
Conlon, T.
Corbet, S.
Goodell, J.W.
Publication Date
2023-05
End of Embargo
Supervisor
Rights
Peer-Reviewed
Yes
Open Access status
closedAccess
Accepted for publication
12/01/2023
Institution
Department
Awarded
Embargo end date
Collections
Additional title
Abstract
Employing a TVP-VAR dynamic connectedness analysis, we identify avenues through which the collapse of the FTX exchange manifested contagion effects throughout a number of financial markets. Results indicate that interaction effects become significantly pronounced, coinciding with key milestones during the collapse of FTX and related companies. Specifically, sources of contagion stem from two tokens created by the exchange and related companies, namely FTT Token and Serum. Such results further develop the expanding literature based on the inherent contagion effects of such unregulated products.
Version
No full-text in the repository
Citation
Akyildirim E, Conlon T, Corbet S et al (2023) Understanding the FTX exchange collapse: A dynamic connectedness approach. Finance Research Letters. 53: 103643.
Link to publisher’s version
Link to published version
Link to Version of Record
Type
Article