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Extended Abstract

DOI: 10.4230/LIPIcs.AFT.2025.10

Do Inflation Expectations Drive Cryptocurrency Investments? (Extended Abstract)

Authors: Will Cong, Pulak Ghosh, Jiasun Li, Qihong Ruan, and Artem Streltsov

Published in: LIPIcs, Volume 354, 7th Conference on Advances in Financial Technologies (AFT 2025)

Abstract

This extended abstract summarizes the essence of [Cong, Ghosh, Li, Ruan, and Streltsov, 2024], which uses proprietary data from a predominant cryptocurrency exchange in India and the country’s Household Inflation Expectations Survey to document a significantly positive association between inflation expectations and individual cryptocurrency purchases. The authors find that the effect is concentrated in Bitcoin (BTC) and Tether (USDT) trading, and is robust after controlling for speculative demand captured by surveys of investors' expected cryptocurrency returns. They also find that higher inflation expectations are associated with more new cryptocurrency investors. These results have causal interpretations as confirmed by instrumental variables. The findings of [Cong, Ghosh, Li, Ruan, and Streltsov, 2024] provide direct evidence that households already adopt cryptocurrencies for inflation hedging, which in turn rationalizes their high adoption in developing countries without a globally dominant currency.

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Will Cong, Pulak Ghosh, Jiasun Li, Qihong Ruan, and Artem Streltsov. Do Inflation Expectations Drive Cryptocurrency Investments? (Extended Abstract). In 7th Conference on Advances in Financial Technologies (AFT 2025). Leibniz International Proceedings in Informatics (LIPIcs), Volume 354, pp. 10:1-10:3, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2025)

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@InProceedings{cong_et_al:LIPIcs.AFT.2025.10,
  author =	{Cong, Will and Ghosh, Pulak and Li, Jiasun and Ruan, Qihong and Streltsov, Artem},
  title =	{{Do Inflation Expectations Drive Cryptocurrency Investments?}},
  booktitle =	{7th Conference on Advances in Financial Technologies (AFT 2025)},
  pages =	{10:1--10:3},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-400-0},
  ISSN =	{1868-8969},
  year =	{2025},
  volume =	{354},
  editor =	{Avarikioti, Zeta and Christin, Nicolas},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.AFT.2025.10},
  URN =		{urn:nbn:de:0030-drops-247292},
  doi =		{10.4230/LIPIcs.AFT.2025.10},
  annote =	{Keywords: Bitcoin, Cryptocurrency, Household Finance, Inflation, Stablecoin}
}

Document

Extended Abstract

DOI: 10.4230/LIPIcs.AFT.2025.11

Cryptocurrency Exchange Listings (Extended Abstract)

Authors: Jiasun Li, Mei Luo, Muzhi Wang, and Zhe Wei

Published in: LIPIcs, Volume 354, 7th Conference on Advances in Financial Technologies (AFT 2025)

Abstract

This extended abstract summarizes the essence of [Li et al., 2025], which studies the listing decisions as well as listing performances on cryptocurrency exchanges, and investigates potential strategic incentives and their interactions with regulatory exposures. The authors first present a case study comparing cryptocurrency listings on the largest and more regulated U.S. exchange, Coinbase, and the largest but less regulated global exchange, Binance. They find that: Regarding listing performance, while cryptocurrency listings on both exchanges see significantly positive short-term returns, the more regulated Coinbase sees significantly higher listing returns than the less regulated Binance; Regarding listing choices, while both exchanges tend to list cryptocurrencies with more GitHub development activities, conflicts of interests arise when exchanges list cryptocurrencies that their venture capital arms have previously invested in. Specifically, the authors find the less regulated Binance being more likely to list its self-invested coins with inferior fundamentals, and the apparent agency friction does not seem to be corrected by market forces. To obtain external validity of the lessons learned from the top two exchanges, the authors further construct an exchange regulation index on a larger sample of 80 qualified exchanges, and confirm the relation between stricter exchange regulations and higher short-term listing returns, controlling for cryptocurrency and exchange attributes.

Cite as

Jiasun Li, Mei Luo, Muzhi Wang, and Zhe Wei. Cryptocurrency Exchange Listings (Extended Abstract). In 7th Conference on Advances in Financial Technologies (AFT 2025). Leibniz International Proceedings in Informatics (LIPIcs), Volume 354, pp. 11:1-11:2, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2025)

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@InProceedings{li_et_al:LIPIcs.AFT.2025.11,
  author =	{Li, Jiasun and Luo, Mei and Wang, Muzhi and Wei, Zhe},
  title =	{{Cryptocurrency Exchange Listings}},
  booktitle =	{7th Conference on Advances in Financial Technologies (AFT 2025)},
  pages =	{11:1--11:2},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-400-0},
  ISSN =	{1868-8969},
  year =	{2025},
  volume =	{354},
  editor =	{Avarikioti, Zeta and Christin, Nicolas},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.AFT.2025.11},
  URN =		{urn:nbn:de:0030-drops-247305},
  doi =		{10.4230/LIPIcs.AFT.2025.11},
  annote =	{Keywords: cryptocurrency, exchanges, listing, regulation}
}

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Do Inflation Expectations Drive Cryptocurrency Investments? (Extended Abstract)

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Cryptocurrency Exchange Listings (Extended Abstract)

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