Un(punishment) of Russia-Ukraine war in the top ten digital currencies
- Leonardo H S Fernandes,
- Fernando Henrique Antunes de Araujo
, - José W L Silva,
- Kleber E S Sobrinho,
- Benjamin Miranda Tabak
Leonardo H S Fernandes
Department of Economics and Informatics, Federal Rural University of Pernambuco
José W L Silva
Department of Statistics and Informatics, Federal Rural University of Pernambuco
Kleber E S Sobrinho
Federal Institute of Education, Science and Technology of Paraíba
Benjamin Miranda Tabak
School of Public Policy and Government, Getulio Vargas Foundation, SGAN 602 Módulos A
Abstract
This letter has investigated the exogenous shocks (climate change and the Russia-Ukraine war) in the top ten digital currencies' price dynamics. Therefore, we use the information theory quantifiers. We discover that the exogenous shocks have an ambiguous effect on the informational efficiency of these digital currencies. Our results shed light on the potential of altcoins to support exogenous shocks and their capability to use with portfolio selection, risk diversification and herding behaviour.
