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Market Trust

Definition

Market trust represents the collective confidence investors and participants have in the integrity, security, and stability of a digital asset market or its components. This fundamental sentiment is built upon factors such as regulatory clarity, technological reliability, transparency of operations, and the absence of fraudulent activities or systemic failures. High market trust encourages participation, investment, and sustained growth, while its erosion can lead to significant capital withdrawal and price depreciation. It serves as a crucial non-tangible asset for any financial ecosystem.