Before revision:  As well, it has a non-linear effect on the fundamental values of the cryptocurrency and blockchain  platform, depending on the severity of underlying adverse selection.
After revision:  As well, it has a non-linear effect on the fundamental values of the cryptocurrency and blockchain protocol mitigates uncertainty. Since, as a new trading platform, the blockchain triggers segmentation of market and differentiation of agents in both the sell and buy sides of the market, it recomposes the asymmetric information and generates spreads in asset price and quality between itself and a traditional platform. We show that marginal innovation and sophistication of the smart contract have non-monotonic effects on the trading value in the blockchain platform, depending on the severity of underlying adverse selection.