Report finds wash trading in Polymarket election odds
A recent investigation by Chaos Labs and Inca Digital revealed that approximately 30% of the trading activity on Polymarket’s 2024 U.S. presidential election predictions may be attributed to wash trading.
This practice, used to manipulate markets by creating artificial trading volume, has raised concerns about the reliability of reported data on the platform.
According to the findings, the actual transaction volume for the 2024 election market on Polymarket was estimated at $1.75 billion, significantly lower than the reported $2.7 billion.
Analysts believe that the discrepancy is partly due to Polymarket counting shares in whole dollar amounts, even though individual shares trade below $1.
Data from Dune Analytics further indicated that the total open interest for the election market on Polymarket was slightly over $150 million.
Open interest measures the total number of active positions held by participants, which differs from reported trading volume as it doesn’t account for transactions where traders sell their positions to others.
Concerns about market manipulation emerged after the odds on Polymarket began to show a substantial lead for Donald Trump over Kamala Harris in early October.
Trump’s lead, which has now grown to around 30 points, stands in stark contrast to traditional polling data, prompting questions about the platform’s transparency.
Polymarket’s investigation identified one trader using four accounts—Fredi9999, Theo4, PrincessCaro, and Michie—who was responsible for $28 million in pro-Trump bets.
The individual, described as a French national and seasoned trader, remains unnamed.
Following the investigation, another large bet of $2 million favoring Trump was reportedly placed by an unrelated individual.
Polymarket has committed to filtering out U.S. users and potential manipulators to improve market integrity amid ongoing concerns over the platform’s activities.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
New spot margin trading pair — HOLO/USDT!
FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn
- FUN plunged 32.34% in 24 hours to $0.008938, marking a 541.8% monthly loss amid prolonged bearish trends. - Technical breakdowns, elevated selling pressure, and forced liquidations highlight deteriorating market sentiment and risk-off behavior. - Analysts identify key support below $0.0080 as critical, with bearish momentum confirmed by RSI (<30) and MACD indicators. - A trend-following backtest strategy proposes short positions based on technical signals to capitalize on extended downward trajectories.

OPEN has dropped by 189.51% within 24 hours during a significant market pullback
- OPEN's price plummeted 189.51% in 24 hours to $0.8907, marking its largest intraday decline in history. - The token fell 3793.63% over 7 days, matching identical monthly and yearly declines, signaling severe bearish momentum. - Technical analysts cite broken support levels and lack of bullish catalysts as key drivers of the sustained sell-off. - Absence of stabilizing volume or reversal patterns leaves the market vulnerable to further downward pressure.

New spot margin trading pair — LINEA/USDT!
Trending news
MoreCrypto prices
More








