Supply Side Manipulation

Definition ∞ Supply Side Manipulation involves artificial actions taken to influence the availability or distribution of a digital asset, thereby impacting its market price. This can include withholding assets from exchanges, creating artificial scarcity, or controlling a significant portion of the circulating supply. Such activities aim to distort fair market pricing and benefit manipulators at the expense of other market participants. It undermines market integrity and fair price discovery.
Context ∞ Supply Side Manipulation is a recurring concern in cryptocurrency news, particularly in less liquid markets or for newer digital assets with concentrated ownership. Reports often highlight unusual on-chain movements or trading patterns that suggest attempts to control asset supply. Regulators and market surveillance entities actively monitor for such activities, which are generally prohibited in traditional financial markets. Addressing this manipulation is crucial for fostering transparent and equitable digital asset markets.