What Is an "Economic Attack" in the Context of Cryptocurrency Security? ▴ Learn

What Is an “Economic Attack” in the Context of Cryptocurrency Security?

An economic attack is a broad term for malicious actions that exploit the financial incentives or market dynamics of a cryptocurrency, rather than purely technical flaws. Examples include short-selling a coin before executing a 51 percent attack to profit from the resulting price crash, or manipulating the oracle data used in DeFi protocols.

The goal is to maximize financial gain by coordinating a security breach with market manipulation, leveraging the vulnerability of the network's economic structure.

How Does the Cost of a 51 Percent Attack Relate to the Network’s Market Capitalization?

In Derivatives, How Can the Price of a Utility Token Be Hedged Using Futures Contracts?

What Is a 51 Percent Attack and How Does It Exploit the Longest Chain Rule?

Do Proof-of-Stake (PoS) Systems Face an Equivalent to a 51 Percent Attack?