Price Manipulation Attack

Definition ∞ Price manipulation attack refers to malicious actions undertaken to artificially influence the market price of a digital asset. These attacks can involve coordinated buying or selling, spreading false information, or exploiting protocol vulnerabilities. The objective is to profit from the induced price swings, often at the expense of unsuspecting market participants. Such attacks undermine market integrity and investor confidence.
Context ∞ Price manipulation attacks pose a significant threat to the fairness and stability of digital asset markets, particularly for smaller, less liquid assets. Regulators globally are working to identify and prosecute individuals or entities engaged in such activities, although the decentralized nature of some markets presents challenges. Enhanced market surveillance and robust protocol design are key defenses against these deceptive practices.