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Supply Manipulation

Definition

Supply manipulation involves illicit actions taken to artificially influence the circulating quantity or perceived scarcity of a digital asset, thereby impacting its market price. This can include schemes like wash trading, where an entity buys and sells an asset to itself to create false trading volume, or intentional delays in token releases to create artificial demand. Such activities distort fair market operations and can lead to significant losses for unsuspecting investors. It represents an attempt to unlawfully control market dynamics for personal gain.