Returns and network growth of digital tokens after cross-listings

46 Pages Posted: 5 Dec 2018 Last revised: 3 Feb 2021

See all articles by Hugo Benedetti

Hugo Benedetti

ESE Business School - Universidad de los Andes, Chile

Ehsan Nikbakht

Hofstra University

Date Written: July 30, 2019


This paper examines the role of cross-listings in the digital token marketplace ecosystem. Using a unique set of publicly available and hand-collected data from 3,625 tokens traded in 113 marketplaces, we find significant increases in price, trading volume, network growth and on-chain activity around the date of a token’s first cross-listing. Tokens earn a 16% crypto-market adjusted return in the two weeks around the cross-listing date. Daily network growth triples on the day of cross-listing. Using the uniquely heterogeneous characteristics of token marketplaces, we identify specific value-creation channels. We provide the first evidence supporting value creation through network externalities proposed by recent token-valuation models. Consistent with equity cross-listing theory, we find higher returns for cross-listings that reduce market segmentation and improve information production. Our reported findings have significant policy implications in terms of more transparent regulations to reduce financial misconduct in the digital marketplace.

Keywords: Blockchain, Cryptocurrencies, Crypto-Tokens, Tokens, Exchange, Marketplace, Listing, Bitcoin, BTC, Fintech, ICO, Initial Coin Offering

JEL Classification: G12, G14, G18, G24, G28, G30

Suggested Citation

Benedetti, Hugo E and Nikbakht, Ehsan, Returns and network growth of digital tokens after cross-listings (July 30, 2019). Journal of Corporate Finance, Vol. 66, No. 101853, 2021, Available at SSRN: or

Hugo E Benedetti (Contact Author)

ESE Business School - Universidad de los Andes, Chile ( email )

Av. La Plaza 1905
San Carlos de Apoquindo, Las Condes

Ehsan Nikbakht

Hofstra University ( email )

Hempstead, NY 11549
United States

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