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THE PRICE OF PROCESSING

> When data is public, but not yet understood.

In financial markets, speed and understanding are everything.

On a public blockchain, every transaction, even a hack, becomes visible the instant it happens. But visibility isn't the same as comprehension, there is a skill issue in the middle.

> Hidden within millions of transactions, a few lines of code can drain millions of dollars before anyone realizes what happened.

When some asshole pulls off a hack, the team usually throws up an announcement on social media. But that thing ain't instant, while they're fumbling around, the price has already tanked. It's only the sharp eyed players who caught the early signals who managed to bail out their sorry asses in time.

> MISSION: MEASURE THE INVISIBLE MARKET REACTION

How much of the total price drop happened before the public announcement?

> You'll dig into real data, charts and tables from actual research, to uncover the number.

Price reaction and information asymmetry windowThe area between hack time and public announcement visualizes the information asymmetry window. The price path declines across this window, indicating pre-announcement price discovery.— Information Asymmetry Window —(Due to Processing Costs)?Price Discoveryt₀Hack TransactionDetected On-ChainComplex Public Information(High Processing Cost)t_commonPublic Announcementvia Social MediaSimple Common Knowledge(Low Processing Cost)Governance Token Price