Fortune Claims Polymarket Is 'Rife' With Wash Trading
Polymarket is experiencing significant wash trading, a form of market manipulation illegal in traditional finance, according to analyses by blockchain firms. Chaos Labs estimates that about one-third of trading volume on the presidential market is likely wash trading, while Inca Digital notes a significant portion of overall volume may also be attributed to this practice. Wash trading can create a misleading perception of demand and pricing. Allegations suggest motivations for wash trading may include airdrop farming for potential token giveaways, rather than influencing election outcomes. Polymarket currently does not charge trading fees, facilitating repeated trades. A veteran trader disputed claims regarding how trading volume is calculated, asserting that notional value is standard in prediction markets. Previous claims of manipulation involving a "whale" trader attempting to influence Trump's odds have been deemed dubious by experts, with evidence suggesting strategic buying rather than price inflation.
