Type and Duration
PhD-Thesis, since February 2021Coordinator
Institute for FinanceMain Research
Growth and ComplexityDescription
The rapid development of blockchains and cryptocurrencies leads to an increasing amount of research and practical applications within the field of innovative finance. Decentralized exchanges and tokens are two outcomes of these development which I will study further here.The thesis will consists of three papers which will be combined into a cumulative dissertation.
The first two papers will investigate crypto exchanges in terms of liquidity and arbitrage in order to evaluate their degree of market efficiency and their comparability with equity and bond markets. Cryptocurrencies are widely regarded as a new asset class. However, institutional and retail investors expect some conditions asset markets have to fulfill to be attractive.
The third paper will conduct research on the effect of the parallel trading of fractions of assets in the form of tokens as well as whole assets. So far, fractions of shares cannot be traded on exchanges, but only with the help of brokers which may lead to high transaction costs. The option to trade tokens representing fraction of shares can be beneficial for all market participants. The investors have more opportunities to diversify, issuers have a larger investor base, and the exchanges generate higher revenues due to larger trading volumes. This research will be conducted in an experimental setup.
