Blockchain-based prediction markets are attracting more investors as they seek better returns than simply holding cryptocurrencies, according to a recent report. These markets are becoming a new speculative space, where casual traders compete against data-driven professionals, leading to significant information imbalances and arbitrage opportunities. While sports betting dominates these platforms, events related to Bitcoin and other cryptocurrencies are emerging as attractive options for traders. The report highlights that many major crypto exchanges operate market-making desks to provide liquidity and profit from retail trading. For quantitative traders, prediction markets can yield favorable asymmetric payoffs compared to traditional spot tokens. For example, on Polymarket, traders are wagering on whether the BNB token will reach $1,500 by year-end, with potential payouts significantly higher than spot investments. However, concerns about insider trading have arisen, particularly with accounts showing extraordinary success, suggesting the use of AI bots for enhanced betting strategies.
Read more AI-generated news on: undefined/news
