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Risk analyses of the crypto-market: A literature review

Author

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  • Jean-Guillaume Dumas

    (CASC - Calcul Algébrique et Symbolique, Sécurité, Systèmes Complexes, Codes et Cryptologie - LJK - Laboratoire Jean Kuntzmann - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Sonia Jimenez-Garces

    (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes)

  • Florentina Șoiman

    (CASC - Calcul Algébrique et Symbolique, Sécurité, Systèmes Complexes, Codes et Cryptologie - LJK - Laboratoire Jean Kuntzmann - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes)

Abstract

This paper studies the literature on the vulnerabilities and risks of the crypto-market. Since their creation, crypto-assets have experienced remarkable market growth and performance, solidifying their position as an indispensable instrument within financial markets. The existing literature has often addressed the crypto-market risks independently based on their nature. Consequently, in this paper, we aim to provide a holistic analysis of the various risks that exist in the crypto-market. Notably, we focus on the financial and technological types of risk and emphasize their influence on price stability. Furthermore, to complete this study, we propose a conceptual metric to determine the likelihood of technological vulnerabilities triggering financial risks. Our contributions are twofold. First, we perform a cross-disciplinary literature review addressing financial and technological crypto-market risks together. Secondly, we show that these risks can become a trigger one for another.

Suggested Citation

  • Jean-Guillaume Dumas & Sonia Jimenez-Garces & Florentina Șoiman, 2021. "Risk analyses of the crypto-market: A literature review," Post-Print hal-03112920, HAL.
    • Handle: RePEc:hal:journl:hal-03112920
    Note: View the original document on HAL open archive server: https://hal.science/hal-03112920v4
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    References listed on IDEAS

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    2. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
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    15. Corbet, Shaen & Lucey, Brian & Urquhart, Andrew & Yarovaya, Larisa, 2019. "Cryptocurrencies as a financial asset: A systematic analysis," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 182-199.
    16. Huru Hasanova & Ui‐jun Baek & Mu‐gon Shin & Kyunghee Cho & Myung‐Sup Kim, 2019. "A survey on blockchain cybersecurity vulnerabilities and possible countermeasures," International Journal of Network Management, John Wiley & Sons, vol. 29(2), March.
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    More about this item

    Keywords

    Blockchain; Risk assessment; Financial risks; Technological characteristics; Stakeholders; Financial behavior; Blockchain literacy; Socially responsible investment;
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