Polymarket is currently experiencing significant issues with wash trading, as reports indicate that around one-third of its trading volume is potentially manipulated, creating misleading data.
Chaos Labs' analysis shows that the presidential market alone is rife with wash trading, raising concerns over the authenticity of transaction volumes and the genuine interest in various bets.
The motivations behind wash trading on Polymarket are suspected to stem from users trying to qualify for token giveaways rather than influencing the outcome of political events.
Experts suggest that the lack of trading fees on Polymarket may facilitate repeated trading activities, thus potentially inflating the perceived market activity through manipulative practices.
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