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Decentralized Finance, Crypto Funds, and Value Creation in Tokenized Firms

Reynolds Holding

We document that CFs outperform the market by 2.69 percent per month, as measured by the traditional CAPM-alpha. Interestingly, the outperformance effect is stronger if the firm is backed by a hedge-style CF, rather than a venture-style CF. Third, we shed light on the performance and performance persistence of CFs themselves.

Finance 103