Polymarket In-House Trading Team: A Major Risk for Prediction Market Users?

Polymarket, a leading decentralized prediction market platform, is reportedly assembling an internal team to trade on its own platform. This move, where the platform potentially acts as a direct counterparty to its users, raises significant conflict-of-interest concerns and regulatory red flags. Market integrity is paramount in prediction markets, and this strategy could undermine user trust. If Polymarket's in-house traders profit from non-public data or influence market outcomes, it creates an uneven playing field. This development highlights the evolving risks in the decentralized finance (DeFi) and prediction market space, where transparency and fair access are critical. Users should be aware of the platform's incentives and the potential implications for their positions.