Polymarket, a decentralized prediction platform, faces allegations of engaging in wash trading to influence betting odds surrounding former President Donald Trump’s chances in the upcoming election, according to a report from Fortune. Wash trading—where traders buy and sell the same asset to artificially inflate trading volumes—raises concerns over market manipulation and the platform’s integrity as election betting heats up.
The accusations come as Trump’s election odds have become a popular betting market on Polymarket, drawing increased attention and activity. If substantiated, these allegations could put the platform under regulatory scrutiny, as wash trading is illegal in regulated markets for its role in creating deceptive appearances of market demand. Polymarket has yet to respond to the claims, but market observers suggest that any indication of manipulation could undermine user trust and affect betting flows on the platform.
This incident highlights the potential vulnerabilities in decentralized finance (DeFi) and prediction markets, where regulatory oversight is minimal compared to traditional exchanges. As election-related betting intensifies, transparency and market fairness remain critical to maintaining credibility in the increasingly popular sector.
