Prediction markets see surge in suspicious trades as popularity explodes
Key takeaways
- The surge in suspicious bets comes as trading volumes on prediction markets have jumped, at a time when the platforms are taking more measures to crack down on insider trading after facing heat from lawmakers.
- One of those sources added that some had been flagged to the derivatives regulator, the Commodity Futures Trading Commission, without giving specifics.
- Similarly, Polymarket has also witnessed a significant uptick in the volume of trades that have been flagged as suspicious since the start of this year, a third source said, without giving specifics.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize Top prediction market platforms Kalshi and Polymarket have witnessed a surge in suspicious trades this year, highlighting the popularity of the models with investors but causing a challenge to the platforms as they face increased scrutiny.
The surge in suspicious bets comes as trading volumes on prediction markets have jumped, at a time when the platforms are taking more measures to crack down on insider trading after facing heat from lawmakers.
Since the start of this year, Kalshi has probed and flagged more than 400 suspicious trades, more than twice the number of trades that the platform investigated, all of last year, two sources familiar with the matter said. One of those sources added that some had been flagged to the derivatives regulator, the Commodity Futures Trading Commission, without giving specifics. The CFTC did not immediately respond to a request for comment.