DOI: 10.3390/jrfm16120510 ISSN: 1911-8074
Are Cryptocurrency Forks Wealth Creating?
Bill Hu, Jonathan Miller- Finance
- Economics and Econometrics
- Accounting
- Business, Management and Accounting (miscellaneous)
We find that planned cryptocurrency forks, like voluntary corporate spin-offs, are wealth-creating. Involuntary forks that are forced due to hacks and other problems with the blockchain are not. We find diminishing returns for second-generation forks, alleviating the concern of forking solely for wealth creation.