Polymarket Whales Net $1.2M on Axiom Investigation
Controversy has erupted in the prediction market sector today as suspected insiders profited heavily from non-public information. On Polymarket, the top eight wallets netted over $1.2 million by betting on the outcome of crypto sleuth ZachXBT’s investigation into Axiom before the results were public, according to Cointelegraph. This activity has raised immediate concerns among blockchain researchers regarding the integrity of markets based on investigative journalism.
Further analysis by CoinDesk reveals that at least 12 wallets collectively cleared over $1 million in profit. In one extreme instance, a trader managed to turn a $0.14 average entry on shares into a staggering $411,000 profit. The irony is palpable: a market designed to financially incentivize the exposure of bad actors appears to have been exploited by insiders utilizing the very information meant to be revealed.
Kalshi Cracks Down on MrBeast Employee
While decentralized markets face scrutiny, the regulated US exchange Kalshi is taking active enforcement measures. Beast Industries has suspended a video editor while it conducts an internal investigation into allegations of insider trading on the platform. Beast Industries CEO Jeff Housenbold confirmed the suspension, as reported by Decrypt. This follows Kalshi's revelation of its first enforcement actions, which also included banning a US politician for alleged trading violations.
Regulatory pressure is mounting alongside these platform-specific actions. CFTC Chair Mike Selig stated that the agency has established a prediction markets advisory specifically to catch insider traders, warning that there would be consequences for violators, according to Cointelegraph. As regulators tighten their grip, users utilizing prediction market tools to track volume and odds must now also account for heightened compliance risks.
Market Sentiment Diverges from Crypto Fear
Despite the scandals, trader sentiment on prediction platforms remains resilient. While the broader crypto market is experiencing "extreme fear," prediction market users are displaying increasing bullishness regarding near-term price moves for Bitcoin and Ethereum, reports Decrypt.