A recent article by Fortune has shed light on suspicions of market manipulation on Polymarket. The article, published approximately a week after initial concerns arose, referenced research conducted by two blockchain analytics firms.
One of the firms, Chaos Labs, conducted an analysis that suggested around one-third of trading volume and overall users on the presidential market may have been involved in wash trading. This dubious activity was also found across all markets on the platform. Meanwhile, the second firm, Inca Digital, identified a significant portion of the market’s volume that could potentially be attributed to wash trading.
These findings have raised concerns about the integrity and transparency of trading activity on Polymarket. Market manipulation, such as wash trading, can artificially inflate trading volume and mislead investors. It is essential for platforms like Polymarket to take steps to prevent and detect such manipulative practices to maintain trust and confidence among users.
