Crypto Hedge Funds: Brand Equity and Risk Factors

Rios and Riquelme (2010) found evidence on the sources of brand equity for online companies based on brand awareness and recognition, brand association (trust) and loyalty. They based their approach in the measurement of the influence of functionality, fulfillment and customer service on line on the sources of brand equity. Here we propose a variant suitable for crypto hedge funds, which are heterogeneous in nature (i.e. follow different investment strategies, from the pure passive to the fully automated), at various stages of operational readiness (since this is an infant industry, some highly publicized funds are not fully staffed), and, selective in terms of client base.

We found that the top drivers of brand equity share are average monthly leads and growth; brand equity is also negatively impacted by unqualified leads. In order to account for the full cost of dealing with trustless assets, brand equity should be modulated by the risk exposure. Relevant risks for crypto hedge funds include custody, compliance, and, identity (KYC/AML).

Crypto Hedge Funds: Brand Equity and Risk Factors (January 20, 2018). Available at SSRN: https://ssrn.com/abstract=3106088
January 20, 2018

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Sources: Available at SSRN: https://ssrn.com/abstract=3106088