Title: Bubbles on altcoins: Rush versus manipulation
Authors: Rostislav Haliplii - Universite Paris 1 Sorbonne (France) [presenting]
Abstract: The aim is to explore the bubble effects on different crypto-currencies. Bubbles are generated by investors' urge to step-in a promising market and by price pumping trades. The main goal of the paper is to assess the presence of bubble effects in this market with customized tests able to detect the timing of various bubbles. We analyse the evolution of a representative sample crypto-currencies over time, encompassing both high and low liquidity coins. The results show that several crypto-currencies prices had episodes of rapid inflation in 2017 related to the Bitcoin bubble and a few emerging coins saw their prices pumped by speculative actions. The occurrence and the timing of bubbles in the top 50 cryptocurrencies are explored. The Sup-Augmented Dickey-Fuller and the Generalized Sup-Augmented Dickey-Fuller tests were applied for each to the full history of exchanges rates relative to the US dollars. The obtained results support our initial intuition underlining two main reasons for bubbles: the investor rush in the initial day of the coin culminating with the 2017 Bitcoin bubble and the various momentum linked to idiosyncratic factors for various coins.