Definition ∞ Manipulation attacks are malicious activities designed to distort market prices, influence asset valuations, or alter the perceived state of a system for illegal gain. In the digital asset space, these can include wash trading, pump-and-dump schemes, or exploiting weaknesses in decentralized exchanges. Such attacks undermine market fairness and investor trust. They aim to establish artificial market conditions.
Context ∞ News frequently reports on manipulation attacks within cryptocurrency markets, resulting in significant financial losses for unsuspecting participants. Regulators globally are working to implement measures to detect and prevent such activities, although the pseudonymous nature of some digital assets presents difficulties. Enhanced surveillance and improved protocol design are key defenses against these threats.