Polymarket Volume Inflated by ‘Artificial’ Activity, Study Finds
Polymarket has been the top prediction market for most of the past year, according to industry analysis.
Photographer: Gabby Jones/BloombergThe volume of activity on Polymarket, one of the most popular prediction markets, has been significantly inflated by so-called wash trading in which users rapidly buy and sell the same contracts, according to a new study by Columbia University researchers.
The “artificial trading,” as the authors call it, varied over time but accounted for an average of 25% of all buying and selling on Polymarket over the past three years, the researchers concluded.