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Token Supply Manipulation

Definition

Token supply manipulation involves illegally changing the total number of tokens in circulation to unfairly affect their value. This refers to the unauthorized or deceptive alteration of a digital asset’s circulating supply, typically through exploiting smart contract vulnerabilities, undisclosed minting capabilities, or dishonest burning mechanisms. This act aims to artificially influence the token’s market price or perceived scarcity, often leading to financial losses for legitimate holders. It represents a severe breach of trust and economic integrity.