RELATIONSHIP BETWEEN METAVERSE CRYPTOCURRENCIES (META COINS) AND SUSTAINABILITY INDICES

Year 2023, Volume: 12 Issue: 4, 142 - 149, 31.12.2023

Servet Say , Mesut Dogan

Abstract

Purpose- The purpose of this study is to determine the relationship between metaverse and sustainability indices. MANA token was used as a metaverse indicator in the study. Dow Jones Sustainability Emerging Markets Index (DJS_EMI), Dow Jones Sustainability World Index (DJS_WI), Dow Jones Sustainability Europe Index (DJS_EI) were used as sustainability indices.
Methodology- In this research, the dynamic relationships between Metaverse and 3 sustainable indices used in the study were analyzed with a time-varying parameter vector autoregressive (TVP-VAR) model. This method is based on the fixed parameter sliding window VAR approach, first developed by Antonakakis and Gabauer (2017) and later updated by Diebold and Yılmaz (2009, 2012, 2014).
Findings- DSJ_EMI variable carries a volatility spread of 24.85% to “DSJ_WI”, 24.81% to “DSJ_EI” and 25.40% to “METAVERSE”. “DSJ_WI” has a 59.68% volatility spread to other variables. The variables “DSJ_EMI” 25.04%, “DSJ_EI” 25.10% and “METAVERSE” 24.69% carry out volatility spread. Finally, while 70.79% of the volatility change in the "METAVERSE" variable is due to itself, a total of 29.21% is due to other variables. The variables “DSJ_EMI” 9.74%, “DSJ_WI” 9.74% and “DSJ_EI” 9.73% perform volatility spread.
Conclusion- Mana (Decentraland Token) is the cryptocurrency used in the virtual reality platform called Decentraland. Metaverse refers to a digital universe called virtual reality, augmented reality and virtual world. Decentraland is a decentralized virtual reality platform that allows users to create, trade and interact with their own digital content.As a result of the analysis, it was determined that MANA, a Metavarse crypto asset, spreads volatility to sustainability indices. In other words, the MANA token spreads volatility to sustainability indices.

Keywords

Metaverse, metaverse cryptocurrincies, meta coins, sustainability ındex, TVP-VAR

References

• Aharon, D. Y. & Demir, E. (2021). NFTs and asset class spillovers: lessons from the period around the COVID-19 pandemic. Finance Research Letters, 19, 102515.
• Akkus, H. T., & Dogan, M. (2023). Analysis of dynamic connectedness relationships between cryptocurrency, NFT and DeFi assets: TVP-VAR approach. Applied Economics Letters, 12, 1-6.
• Akkus, H. T., Gursoy, S., Dogan, M., & Demir, A. B. (2022). Metaverse and metaverse cryptocurrencies (meta coins): Bubbles or future? Journal of Economics Finance and Accounting, 9(1), 22-29.
• Ante, L. (2022). The non-fungible token (NFT) market and its relationship with Bitcoin and Ethereum. FinTech, 1(3), 216-224.
• Antonakakis, N., & Gabauer, D. (2017). Refined measures of dynamic connectedness based on TVP-VAR. MPRA Paper No. 78282.
• Diebold, F. X., & Yilmaz, K. (2009). Measuring financial asset return and volatility spillovers, with application to global equity markets. The Economic Journal, 119(534), 158–171.
• Diebold, F. X., & Yilmaz, K. (2012). Better to give than to receive: Predictive directional measurement of volatility spillovers. International Journal of Forecasting, 28(1), 57–66.
• Diebold, F. X., & Yilmaz, K. (2014). On the network topology of variance decompositions: measuring the connectedness of financial firms. Journal of Econometrics, 182(1), 119-134.
• Doğan, M., Raikhan, S., Zhanar, N., & Gulbagda, B. (2023). Analysis of dynamic connectedness relationships among clean energy, carbon emission allowance, and BIST indexes. Sustainability, 15(7), 6025.
• Dowling, M. (2022). Is non-fungible token pricing driven by cryptocurrencies? Finance Research Letters, 44, 102097.
• Nadini, M., Alessandretti, L., Di Giacinto, F., Martino, M., Aiello, L. M. & Baronchelli, A. (2021). Mapping the NFT revolution: Market trends, trade networks, and visual features. Scientific Reports, 11(1), 1-11.
• Nakavachara, V., & Saengchote, K. (2022). Is Metaverse LAND a good investment? It depends on your unit of account! arXiv preprint arXiv:2202.03081.
• Pamucar, D., & Biswas, S. (2023). A Novel hybrid decision making framework for comparing market performance of metaverse crypto assets. Decision Making Advances, 1(1), 49–62.
• Pereira, C., Monteiro, A. P., Barbosa, F., & Coutinho, C. (2021). Environmental sustainability disclosure and accounting conservatism. International Journal of Advanced and Applied Sciences, 8(9), 63-74.
• Sahay, S., Mahajan, N., Malik, S., & Kaur, J. (2022). Metaverse: Research based analysis and impact on economy and business. In 2022 2nd Asian Conference on Innovation in Technology (ASIANCON) (pp. 1-8). IEEE.
• Sonmezer, S. & Çelik, G. G. (2022). How returns of metaverse tokens are interrelated. International Journal of Social Sciences, 8(1), 213-223.
• Vidal-Tomás, D. (2022). The new crypto niche: NFTs, play-to-earn, and metaverse tokens. Finance Research Letters, 47, 102742.
• Wilson, M. (2003). Corporate sustainability: What is it and where does it come from. Ivey Business Journal, 67(6), 1-5.
• Yılmaz, E. S. & Ecemiş, O., (2022). Metaverse platformlarının pazarlama karması bağlamında çok kriterli karar verme yöntemleriyle incelenmesi. Gaziantep University Journal of Social Sciences, 21(3), 1494-1511.
• Yürek, Y. T., Bulut, M., Özyörük, B., & Özcan, E. (2021). Evaluation of the hybrid renewable energy sources using sustainability index under uncertainty. Sustainable Energy, Grids and Networks, 28, 100527