The Tie Research
Consequences of Small Price Bias in Crypoasset Markets and their Implications for Token Issuers
By Jackson Moss
June 27, 2023
- 0 < MKD ≤ 0.0002
- 0.0002 < MKD ≤ 0.002
- MKD > 0.002
- 0.00 < price ≤ 0.05
- 0.05 < price ≤ 1.00
- 1.00 < price ≤ 10.00
- Price > 10.00
- During the period considered, low price tokens outperformed higher price tokens
- Lower price tokens outperformed higher price tokens in all market capitalization categories, but the effect appears larger for less valuable projects.
- Bull market of December 1, 2020 to May 5, 2021: 33.103% (pval = 0)
- Flat market of April 15, 2020 to August 31, 2020: 5.386% (pval = 0.473789)
- Price is inversely associated with volatility, even after controlling for market capitalization.
- Price is inversely associated with cumulative returns, even after controlling for market capitalization. This relationship appears strongest during euphoric stages in bull markets and for smaller value projects.
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