Metaverse cryptocurrencies: An empirical analysis of cybersecurity risks and market dynamics

Samet Gürsoy

doi:10.54517/m3105

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Metaverse cryptocurrencies: An empirical analysis of cybersecurity risks and market dynamics

Samet Gürsoy

Article ID: 3105
Vol 6, Issue 2, 2025

DOI: https://doi.org/10.54517/m3105

Received: 27 November 2024; Accepted: 14 February 2025; Available online: 20 March 2025; Issue release: 30 June 2025

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Abstract

This research aims at assessing how significant cybersecurity issues affect Metaverse coin price and trading volume with particular regard to the five greatest assets from 2017 till 2024. The study uses event study and impulse response analysis to examine the impact of MANA (Decentraland), SAND (The Sandbox), AXS (Axie Infinity Shards), ENJ (Enjin Coin) and GALA (Gala Games) on nine major security incidents like the Coincheck and Ronin hacks. Dependent variables include the prices and volumes of coins in the Metaverse, while prices of Bitcoin and Ethereum serve as the main independent variables to control for price activity. The results show short-lived but strong effects, depending on event intensity and platform specifics. The Coincheck hack caused a 4.9% price drop and 22% volume decline over 10 days, while BtcTurk had a smaller impact. The current paper enlarges the body of research addressing the cryptocurrency sector’s market stability with the new knowledge about the risks control and investments into the fresh classes of assets.

Keywords

metaverse cryptocurrencies; cybersecurity events; blockchain security; cryptographic algorithms; digital identity

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