The Influence of ChatGPT on Artificial Intelligence Related Crypto Assets: Evidence from a Synthetic Control Analysis
arXiv:2305.12739 · doi:10.1016/j.frl.2023.103993
Abstract
The introduction of OpenAI's large language model, ChatGPT, catalyzed investor attention towards artificial intelligence (AI) technologies, including AI-related crypto assets not directly related to ChatGPT. Utilizing the synthetic difference-in-difference methodology, we identify significant 'ChatGPT effects' with returns of AI-related crypto assets experiencing average returns ranging between 10.7% and 15.6% (35.5% to 41.3%) in the one-month (two-month) period after the ChatGPT launch. Furthermore, Google search volumes, a proxy for attention to AI, emerged as critical pricing indicators for AI-related crypto post-launch. We conclude that investors perceived AI-assets as possessing heightened potential or value after the launch, resulting in higher market valuations.
26 pages, 4 tables, 1 figure, 2 appendix figures