Eigelshoven, Felix | Ullrich, André | Parry, Douglas

Cryptocurrency Market Manipulation: A Systematic Literature Review

Abstract

Cryptocurrencies, a new class of digital asset predominantly based on blockchain technologies, have gained immense popularity in recent years. Despite of advantages over traditional monetary systems such as lower transaction cost, increased transactional security, or transparency, cryptocurrencies are not free of disadvantages. The increase in popularity has also led to an increase in market manipulation in these markets. While there has been some attempt to identify and classify various cryptocurrency market manipulation schemes, there is a distinct need for a holistic description and classification of current cryptocurrency market manipulation schemes. Therefore, based on a systematic literature review, this paper provides an overview of cryptocurrency market manipulation methods using a concept-centric approach, a characterization of these methods, and identifies market vulnerabilities.