— Ivelisse Porroa-Garcia is now director of government affairs at Ferox Strategies. She previously was policy director for the Congressional Hispanic Caucus.
Recently, such platforms have come under increased scrutiny by lawmakers and regulators. Binance in particular is reportedly under review by regulators in the U.S., Britain, Germany, Japan, Hong Kong and elsewhere.

We also consider two additional factors that account for the finding that in some periods prices drift away from fundamentals. The first factor is the return of Bitcoin. We argue that Bitcoin, being the largest and most traded cryptocurrency, is the most perceptible to sentiment and speculative trading by investors. Thus, as a factor, it can capture periods when trading forces unrelated to fundamentals are the strongest. The second factor is a cryptocurrency price momentum factor that we construct following the seminal work of Jegadeesh and Titman (1993). Momentum effects have been linked to investor psychology (e.g. Barberis et al. 1998).
Table 2. T-test p-values (for each period band of each cryptocurrency / metric pair).