The Impact of Open-Source Community on Cryptocurrency Market Price: An Empirical Investigation

George Mason University School of Business Research Paper Forthcoming

Journal of Management Information Systems, Forthcoming

47 Pages Posted: 10 Nov 2022 Last revised: 10 Jul 2023

See all articles by Mariia Petryk

Mariia Petryk

George Mason University - Department of Information Systems and Operations Management

Liangfei Qiu

University of Florida - Warrington College of Business Administration

Praveen Pathak

University of Florida

Date Written: October 8, 2022

Abstract

The cryptocurrency market has experienced substantial growth in recent years. Though the prices remain volatile, the factors that impact the price dynamics of the new type of investment instrument have not been fully identified yet. In this study, we recognize the dual nature of cryptocurrencies, i.e., being a software program and a financial instrument, and examine the impact of software advancement on the price dynamics of cryptocurrencies. The open-source software (OSS) platform functionality enables social behaviors that we use as signals. Using data from the largest OSS platform, we establish the connection between open-source activities and the price movement of cryptocurrency. In particular, as popularity measures, forks and watches increase the market price increases eventually. On the contrary, contribution measures, such as commits and pull requests, are negatively related to prices. We connect our findings to the public perception of software quality. Our findings have direct implications for investors, OSS platforms, and policymakers.

Keywords: Cryptocurrency, open source, blockchain, signaling theory

Suggested Citation

Petryk, Mariia and Qiu, Liangfei and Pathak, Praveen, The Impact of Open-Source Community on Cryptocurrency Market Price: An Empirical Investigation (October 8, 2022). George Mason University School of Business Research Paper Forthcoming, Journal of Management Information Systems, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4254158

Mariia Petryk (Contact Author)

George Mason University - Department of Information Systems and Operations Management ( email )

4400 University Drive
Fairfax, VA 22030
United States

Liangfei Qiu

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States

HOME PAGE: http://sites.google.com/site/qiuliangfei/

Praveen Pathak

University of Florida ( email )

PO Box 117165, 201 Stuzin Hall
Gainesville, FL 32610-0496
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
237
Abstract Views
890
Rank
247,240
PlumX Metrics