In highly volatile crypto markets, stablecoins serve as a hedge against potential price manipulation. During pump-and-dump schemes or coordinated sell-offs, traders can quickly convert volatile assets into stablecoins to avoid losses. By holding stable value, stablecoins allow investors to wait for market clarity before re-entering. For instance, in altcoin markets prone to sudden spikes and crashes, stablecoins provide a reliable escape route, enabling traders to protect capital and observe market behavior from a secure position. This strategy minimizes exposure to artificial price movements orchestrated by large holders or whales.