Onshoring is essential for prediction markets
Prediction markets must transition onshore to secure long-term credibility, resolve manipulation concerns, and access institutional liquidity.
The argument
The speakers argued that while prediction markets have proven highly accurate, they face significant growing pains regarding insider trading and market manipulation. Onshoring major players like Polymarket would subject them to established anti-manipulation frameworks and level the playing field.
The thesis, stress-tested
✓ What validates it
- ✓Polymarket establishing a fully regulated US-registered entity
- ✓CFTC finalizing its rulemaking on prediction markets
▸ Risks discussed
- ▸Strict CFTC rulemakings banning or heavily restricting political contracts
- ▸Difficulty in policing insider trading on decentralized prediction platforms
Hear it yourself
"people that survive can scale. This is already happening in spot markets because that's just how it works. It forces consolidation. And so if you're hyperliquid, there's a few things that I think have to be addressed, and this is for many of the purpose decks. They're very focused on ADL. I think they're gonna be able to, which is auto deleveraging. There are some risk management things. I think that they're gonna be able to improve over time to make them more institutionally capable. And, again, let's just talk about first principles first before we get into regulation because that's important."
11:15
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE