Trust Dynamics in Cryptocurrency Markets: Centralized vs. Decentralized Exchanges

[2404.17227] Trust Dynamics in Cryptocurrency Markets: Centralized vs. Decentralized Exchanges Skip to main content Search Submit Donate Log in Search arXiv Press Enter to search · Advanced search Economics > General Economics arXiv:2404.17227 (econ) [Submitted on 26 Apr 2024 ( v1 ), last revised 1 May 2026 (this version, v3)] Title: Trust Dynamics in Cryptocurrency Markets: Centralized vs. Decentralized Exchanges Authors: Xintong Wu , Wanlin Deng , Yutong Quan , Lin William Cong , Luyao Zhang View a PDF of the paper titled Trust Dynamics in Cryptocurrency Markets: Centralized vs. Decentralized Exchanges, by Xintong Wu and 4 other authors View PDF HTML (experimental) Abstract: Trust mechanisms diverge between centralized and decentralized exchanges, representing distinct sociotechnical governance paradigms. However, quantifying trust dynamics and their redistribution between these architectures remains empirically challenging, limiting understanding of how institutional shocks affect market behavior. The FTX collapse offers a natural experiment to bridge this gap. Through an interdisciplinary approach combining causal inference and computational text analysis, we find significant price declines and capital reallocation from centralized to decentralized exchanges following the event. While sentiment metrics showed no sharp discontinuities, topic modeling and network analysis of Discord communities reveal that seasonal holiday discourse obscured underlying trust concerns in centralized exchange forums. These findings underscore the fragility of institutional trust architectures and demonstrate how mixed methods can illuminate behavioral patterns during systemic crises, offering insights for exchange risk management and regulatory assessment. Subjects: General Economics (econ.GN) ; Computational Engineering, Finance, and Science (cs.CE); Cryptography and Security (cs.CR); Computers and Society (cs.CY); Risk Management (q-fin.RM) Cite as: arXiv:2404.17227 [econ.GN] (or arXiv:2404.17227v3 [econ.GN] for this version) https://doi.org/10.48550/arXiv.2404.17227 Focus to learn more arXiv-issued DOI via DataCite Submission history From: Luyao Zhang [ view email ] [v1] Fri, 26 Apr 2024 07:58:05 UTC (6,709 KB) [v2] Fri, 20 Dec 2024 18:03:21 UTC (3,666 KB) [v3] Fri, 1 May 2026 07:06:51 UTC (3,370 KB) Full-text links: Access Paper: View a PDF of the paper titled Trust Dynamics in Cryptocurrency Markets: Centralized vs. Decentralized Exchanges, by Xintong Wu and 4 other authors View PDF HTML (experimental) TeX Source view license Current browse context: econ.GN < prev | next > new | recent | 2024-04 Change to browse by: cs cs.CE cs.CR cs.CY econ q-fin q-fin.EC q-fin.RM References & Citations NASA ADS Google Scholar Semantic Scholar export BibTeX citation Loading... BibTeX formatted citation × loading... Data provided by: Bookmark Bibliographic Tools Bibliographic and Citation Tools Bibliographic Explorer Toggle Bibliographic Explorer ( What is the Explorer? ) Connected Papers Toggle Connected Papers ( What is Connected Papers? ) Litmaps Toggle Litmaps ( What is Litmaps? ) scite.ai Toggle scite Smart Citations ( What are Smart Citations? ) Code, Data, Media Code, Data and Media Associated with this Article alphaXiv Toggle alphaXiv ( What is alphaXiv? ) Links to Code Toggle CatalyzeX Code Finder for Papers ( What is CatalyzeX? ) DagsHub Toggle DagsHub ( What is DagsHub? ) GotitPub Toggle Gotit.pub ( What is GotitPub? ) Huggingface Toggle Hugging Face ( What is Huggingface? ) ScienceCast Toggle ScienceCast ( What is ScienceCast? ) Demos Demos Replicate Toggle Replicate ( What is Replicate? ) Spaces Toggle Hugging Face Spaces ( What is Spaces? ) Spaces Toggle TXYZ.AI ( What is TXYZ.AI? ) Related Papers Recommenders and Search Tools Link to Influence Flower Influence Flower ( What are Influence Flowers? ) Core recommender toggle CORE Recommender ( What is CORE? ) Author Venue Institution Topic About arXivLabs arXivLabs: experimental projects with community collaborators arXivLabs is a framework that allows collaborators to develop and share new arXiv features directly on our website. Both individuals and organizations that work with arXivLabs have embraced and accepted our values of openness, community, excellence, and user data privacy. arXiv is committed to these values and only works with partners that adhere to them. Have an idea for a project that will add value for arXiv's community? Learn more about arXivLabs . Which authors of this paper are endorsers? | Disable MathJax ( What is MathJax? ) We gratefully acknowledge support from our major funders , member institutions , , and all contributors. About · Help · Contact · Subscribe · Copyright · Privacy · Accessibility · Operational Status (opens in new tab) Major funding support from

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