MULTIFACTOR MODEL FORPRICING CRYPTOCURRENCIES

Abstract

The main aim of the paper is to contribute to the discussion of cryptocurrency pricing through asset pricing models. The paper develops multifactor models for the cryptocurrency valuation and discusses the elements of these models based on the literature review of scholarly articles, books, and scientific databases. We further developed the models from unit factor to five factors in order to observe whether the development is achieved by adding new factors into the model. Consequently, we pointed out the most influential factor that determines the value of cryptocurrencies.