Cryptocurrency Value and 51% Attacks: Evidence from Event Studies

@inproceedings{Shanaev2019CryptocurrencyVA,
  title={Cryptocurrency Value and 51\% Attacks: Evidence from Event Studies},
  author={Savva Shanaev and Arina Shuraeva and Mikhail Vasenin and Maksim Kuznetsov},
  booktitle={The Journal of Alternative Investments},
  year={2019}
}
In this article, an event studies approach is utilized to assess the influence of 51% attacks on proof-of-work (PoW) cryptocurrency prices. The study uses an exhaustive sample of 14 individual attacks on 13 cryptocurrencies. Across multiple event studies techniques, majority attacks on blockchains are consistently shown to immediately decrease corresponding coin prices by 12% to 15%. Significantly negative price response is robust in various event windows. Coin prices do not recover to pre… 

Risks in Blockchain – A Survey about Recent Attacks with Mitigation Methods and Solutions for Overall

TLDR
The goal of this research is to find traits in the context and attack surface that exacerbate the losses caused by certain attacks as opposed to others and propose solutions and mitigation techniques based on the circumstances of the cases where the impact of the attack was less serious.

Towards Proof-of-Work Cryptocurrency Valuation: Mining Games, Network Effects and the Social Value of Blockchain

In this study, a mathematical model of proof-of-work cryptocurrency valuation is developed based on the concepts of simultaneous equilibria in two mining games, the purchasing power parity in the

Market Reaction to Exchange Listings of Cryptocurrencies 8 th September 2019

Cryptocurrency markets operate at a global scale and are lightly regulated compared to traditional securities markets. Cryptocurrencies like Bitcoin trade across multiple secondary markets that

Measuring the effects of Bitcoin forks on selected cryptocurrencies using event study methodology

The objective of the study is to determine whether the Bitcoin forks have produced significant effects on the cryptocurrency market. The event study methodology is used in this paper in order to

Cyber Attacks, Spillovers and Contagion in the Cryptocurrency Markets

Market Reaction to Exchange Listings of Cryptocurrencies

Cryptocurrency markets operate at a global scale and are lightly regulated compared to traditional securities markets. Cryptocurrencies like Bitcoin trade across multiple secondary markets that

Distributed Hybrid Double-Spending Attack Prevention Mechanism for Proof-of-Work and Proof-of-Stake Blockchain Consensuses

TLDR
A hybrid algorithm is proposed that combines PoS and PoW mechanisms to provide a fair mining reward to the miner/validator by conducting forking to combine PoW and PoS consensuses and can reduce the possibility of intruders performing double mining.

Proof-of-What? Detecting Original Consensus Algorithms in Cryptocurrencies with a Four-Factor Model

This study applies Fama-French-style factor loading analysis to cryptocurrency financial performance data to determine the originality of 32 reportedly novel consensus algorithms (“proofs”) and 20

Taming the Blockchain Beast? Regulatory Implications for the Cryptocurrency Market

This paper uses a unique dataset of 120 regulatory events from five classes to test the relevance of the regulatory framework for cryptocurrency value. Time-series market-wide estimates and panel

References

SHOWING 1-10 OF 27 REFERENCES

Cryptocurrency: A New Investment Opportunity?

TLDR
Results show that the return correlations between cryptocurrencies and traditional assets are low and that adding CRIX returns to a traditional asset portfolio improves risk–return performance.

Random Mining Group Selection to Prevent 51% Attacks on Bitcoin

  • Jaewon BaeHyuk Lim
  • Computer Science, Mathematics
    2018 48th Annual IEEE/IFIP International Conference on Dependable Systems and Networks Workshops (DSN-W)
  • 2018
TLDR
A random mining group selection technique is proposed to reduce the probability of successful double-spending attacks in Bitcoin and demonstrates that if the number of groups is greater than or equal to two, the probability that the attacker will find the next block is less than 50%.

Evaluating the financial effect from cyber attacks on firms and analysis of cyber risk management

In our epoch, internet is an integral part for business activity. Giant firms, like Amazon, are exclusive dependent from internet activities, while numerous other sectors, for example finance

How Does Cyber Crime Affect Firms? The Effect of Information Security Breaches on Stock Returns

TLDR
The results seem to show a link between cyber crime and insider trading, and it is found that financial entities often suffer greater negative effects than other companies following cyber attacks.

Blockchain Technology and Decentralized Governance: Is the State Still Necessary?

TLDR
The role of the State is advocated as a necessary central point of coordination in society, showing that decentralization through algorithm-based consensus is an organizational theory, not a stand-alone political theory.

The Economics of Bitcoin Mining, or Bitcoin in the Presence of Adversaries

TLDR
It is argued that Bitcoin will require the emergence of governance structures, contrary to the commonly held view in the Bitcoin community that the currency is ungovernable.

It Will Cost You Nothing to 'Kill' a Proof-of-Stake Crypto-Currency

  • N. Houy
  • Computer Science, Mathematics
  • 2014
TLDR
It is shown that if the attacker’s motivation is large enough (and this is common knowledge), he will succeed in his attack at no cost and crypto-currencies implementing a proof of work transaction validation system are less vulnerable to a 51% attack.

The Economic Cost of Publicly Announced Information Security Breaches: Empirical Evidence from the Stock Market

TLDR
Stock market participants appear to discriminate across types of breaches when assessing their economic impact on affected firms, consistent with the argument that the economic consequences of information security breaches vary according to the nature of the underlying assets affected by the breach.

Negative bubbles and shocks in cryptocurrency markets