"What's cool about Polymarket is that it creates this financial incentive for people to go and divulge the information to the market and the market to change,"
"We have a lot of data on traders, users, that other prediction markets don't have,"
"There's lots of activity that gets flagged,"
"It could be fraud, it could be theft, it could be a person hacking into their neighbor's computer."
Prediction markets are expanding rapidly while generating persistent insider-trading concerns. Two leading platforms take contrasting approaches: one treats trades based on private information as an incentive for disclosure, while the other is building enforcement infrastructure. The enforcement-focused platform added an expert advisory committee, partnered with a trade-surveillance firm, and hired a head of enforcement, reporting referrals to authorities and planning internal rules and disciplinary processes. The platform emphasizes access to detailed trader data and reports many flagged activities that could involve fraud, theft, or hacking. Defining insider trading on prediction markets remains legally and operationally challenging.
Read at Business Insider
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