Pricing Manipulation

Definition ∞ Pricing manipulation involves intentionally influencing the market price of a digital asset through deceptive or artificial means, rather than legitimate supply and demand forces. This can include wash trading, spoofing, or spreading false information to induce others to buy or sell. Such actions distort fair market valuation and can result in financial gains for the manipulators.
Context ∞ Allegations and instances of pricing manipulation are recurrent themes in crypto news, prompting calls for enhanced market surveillance and regulatory oversight to protect investors. Understanding these illicit practices is crucial for discerning genuine market movements from artificial ones. They pose significant risks to market integrity and fairness within the digital asset ecosystem.