Benedetti, H. The economics of digital token cross-listings.

This paper studies the role of cross-listings in the digital token marketplace ecosystem. Using a unique data set of publicly available and hand collected data from 3,625 tokens, traded in 108 marketplaces, I find significant increases in price and trading activity around the date of a token's first cross-listing. Tokens observe a 49% raw cumulative return in the two weeks around the cross-listing date. Global token trading volume is almost 50 times higher after cross-listing. Using the uniquely heterogeneous characteristics of token marketplaces, I am able to identify specific channels for value creation. I provide the first evidence supporting value creation through network effects proposed by recent token valuation models. Consistent with equity cross-listing theory, I find higher returns for cross-listings that reduce market segmentation and improve information production.


Hugo Benedetti

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