Dual-Market Structure

Definition ∞ A Dual-Market Structure exists when a digital asset is traded on both traditional, regulated exchanges and less regulated, decentralized platforms. This parallel trading environment can lead to price discrepancies, arbitrage opportunities, and varying levels of liquidity. Understanding this structure is important for assessing an asset’s true market depth and regulatory exposure. It highlights the differing operational frameworks within the digital asset landscape.
Context ∞ The ongoing discussion surrounding a Dual-Market Structure often involves the regulatory challenges associated with price discovery and market manipulation across disparate trading venues. The situation can create a debate about the fairness and transparency of pricing mechanisms. A critical future development involves potential regulatory harmonization efforts or technological solutions to bridge these markets more effectively, reducing fragmentation and increasing overall market integrity.