Returns and network growth of digital tokens after cross-listings

Hugo Benedetti*, Ehsan Nikbakht

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

30 Scopus citations


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 3625 tokens traded in 108 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.

Original languageEnglish
Article number101853
Pages (from-to)1-18
Number of pages18
JournalJournal of Corporate Finance
StatePublished - Feb 2021

Bibliographical note

Publisher Copyright:
© 2020 The Author(s)


  • Bitcoin
  • Blockchain
  • BTC
  • Cross-listing
  • Crypto-tokens
  • Cryptocurrencies
  • Exchange
  • FinTech
  • ICO
  • Initial coin offering
  • Listing
  • Marketplace
  • Network effects
  • Tokens


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