On 26 Oct., 2022, the Monetary Authority Singapore (MAS) released two important consultation papers regarding regulations of crypto assets, Proposed Regulatory Measures for Digital Payment Token Services (P008-2022, hereinafter “Token Proposal”) and Proposed Regulatory Approach for...

This paper studies the MAX effect, the relationship between maximum daily returns and future returns in the cryptocurrency market. The cryptocurrency market is an ideal setting for the MAX effect, due to its lottery-like features (i.e., large positive skewness). Contrary to findings in other...