Economists from Voronezh State University, Professor Dmitry Endovitsky, DSc in Economics, and Vyacheslav Korotkikh, Associate Professor at the Faculty of Economics, analysed the risk factors of cryptocurrency investments. The results of their research were published in the Proceedings of Voronezh State University. Series: Economics and Management.
The authors noted that the organised market for digital financial assets is quite new and attracts the attention of regulators and representatives of the financial industry. Most academic studies dedicated to the issues of pricing and risk management of cryptocurrency transactions lack a systematic approach and leaves a great number of fundamental issues unresolved.
The results of trading cryptocurrencies with a market capitalisation of more than $1 million (April 2013 – April 2021) showed that the cryptocurrency market is subject to the influence of price anomalies that can be found in the markets of traditional financial tools. In order to explain price anomalies and arbitrary strategies based on them, the work presented various factor specifications of cryptocurrency pricing models, which can be used as the basis for the formation of a comprehensive vision of the risks of transactions with digital financial assets.