RATE Group | Finnish study proposes a model to predict cryptocurrency defaults
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Finnish study proposes a model to predict cryptocurrency defaults

27 May Finnish study proposes a model to predict cryptocurrency defaults

Posted at 14:14h in Cryptocurrency News by

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University of Vaasa (Finland) researchers propose a model that is capable of explaining 87 percent of cryptocurrency bankruptcies after only one month of trading. It could potentially serve as a screening tool for investors keen to boost overall performance of cryptocurrency investment portfolios by avoiding investing in unreliable cryptocurrencies.

Nowadays there are thousands of cryptocurrencies available. Interestingly, only a small percentage are actively traded, whereas the vast majority appears to be either inactive or have already failed. Default risk is one of the risks associated with investing in digital assets like cryptocurrencies. The question arises which factors help to predict whether a cryptocurrency will eventually go bust.

A recently published research article from Klaus Grobys and Niranjan Sapkota from the University of Vaasa in the well-known journal Applied…

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