A Taxonomy of Violations in Digital Asset Markets.

Numerous frauds, market manipulations and other violations have recently shaken investor confidence in digital asset markets and digital assets themselves. Yet, investor confidence and market integrity are key requirements for the continued success of crypto and other digital assets. In order to facilitate the integrity of digital asset markets and avoid integrity incidents in the future, a systematic overview of violations and their main characteristics is needed to develop appropriate countermeasures. Therefore, we develop a taxonomy of violations in digital asset markets and evaluate the taxonomy based on real-world cases. Our results show that many types of market manipulation in traditional financial markets can also be observed in digital asset markets. However, there are new and additional violations in digital asset markets. We also find that many violations depend on specific capabilities of the violator, certain trading conditions, and asset-specific characteristics. [ABSTRACT FROM AUTHOR]