Should All Blockchain-Based Digital Assets be Classified Under the Same Asset Class?

37 Pages Posted: 17 Aug 2019 Last revised: 18 Aug 2019

See all articles by Voraprapa Nakavachara

Voraprapa Nakavachara

Faculty of Economics, Chulalongkorn University

Tanapong Potipiti

Chulalongkorn University - Faculty of Economics

Thanawan Lertmongkolnam

Deloitte Consulting

Date Written: August 18, 2019

Abstract

The literature is well aware that blockchain-based digital assets would constitute a new asset class. However, it has been rather silent about the distinction among them. This paper discusses the digital tokens’ differences and similarities by their (i) creation and initial distribution; (ii) intended properties; (iii) actual usage; and (iv) behaviors. Although the digital tokens are indistinguishable in some aspects, they differ in the way they are created and initially distributed. Some of them have distinguishable risk and return profiles. Therefore, we take a view that the digital tokens take (or will take) different roles in the financial systems; should be classified under different asset classes; and should be subject to different sets of regulations (although some may overlap).

Keywords: Blockchain, Cryptocurrency, Initial Coin Offering, Digital Tokens

JEL Classification: G12, O31, G32

Suggested Citation

Nakavachara, Voraprapa and Potipiti, Tanapong and Lertmongkolnam, Thanawan, Should All Blockchain-Based Digital Assets be Classified Under the Same Asset Class? (August 18, 2019). Available at SSRN: https://ssrn.com/abstract=3437279 or http://dx.doi.org/10.2139/ssrn.3437279

Voraprapa Nakavachara (Contact Author)

Faculty of Economics, Chulalongkorn University ( email )

Bangkok 10330
Thailand

HOME PAGE: http://pioneer.netserv.chula.ac.th/~nvorapra/

Tanapong Potipiti

Chulalongkorn University - Faculty of Economics ( email )

Bangkok 10330
Thailand

Thanawan Lertmongkolnam

Deloitte Consulting ( email )

United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
60
Abstract Views
301
rank
369,487
PlumX Metrics