IMF Warns Tokenized Markets Face Growing Flash Crash Risks, Expects Government Action

The International Monetary Fund warned on Nov. 28 that tokenized markets face escalating flash crash risks and that governments are likely to intervene, Cointelegraph reports. While tokenization enables faster and cheaper transactions, the IMF said automated trading could amplify volatility and flash crash probability. Complex smart contract chains may trigger chain reactions during market stress, turning localized problems into systemic shocks. The IMF predicts governments will take more active roles in the tokenization sector rather than remain passive observers.