How Does a Successful Double-Spend Affect the Exchange Rate Volatility of the Asset?

A successful double-spend attack typically causes a sharp and significant increase in the asset's exchange rate volatility. The attack fundamentally undermines the market's trust in the network's security and immutability.

This loss of confidence leads to panic selling, causing the price to crash and volatility to spike. Exchanges may halt trading or delist the asset, further exacerbating the volatility and making price discovery difficult.