Crypto Startup Uses Polymarket to Bet on Its Own Fundraise, Blindsiding Backers
P2P.me, a startup focused on facilitating stablecoin-to-cash conversions, admitted it made an error by betting on its own fundraising outcome via the prediction market Polymarket. Backed by Coinbase Ventures and Multicoin Capital, P2P.me apologized publicly, acknowledging that its attempt to demonstrate confidence in its project by wagering publicly damaged trust and caused confusion. The company made less than $15,000 in profit from these bets, but recognized that the optics of the move could have significant negative consequences. The wagers centered on whether P2P.me would hit particular fundraising milestones on MetaDAO, a Solana-based platform. MetaDAO distanced itself from the activity and offered refunds to investors; only a small fraction requested them. Investors and some backers, including Coinbase Ventures, were unaware of the betting beforehand. While P2P.me claimed it aimed for transparency by using a clearly labeled account, it conceded the practice was misguided and will adopt a policy to govern future participation in prediction markets. Meanwhile, Polymarket updated its rules to restrict insider trading.
