Predictions Platform Polymarket Volume Inflated by ‘Wash Trading’: Columbia Research
2025-11-07 15:05
Polymarket, a leading crypto prediction market platform, has seen significant inflation of its trading volume due to “artificial” wash trading, a new Columbia University study uncovers. The study notes that Polymarket was not itself responsible for wash trading, while the crypto-based structure could have enabled it. In 2024, concerns over wash trading and potential market manipulation plagued the decentralized prediction platform. At the time, researchers noted that a “significant portion” of the virtual market’s activity might stem from wash trading. Wash trading is a tactic where shares are repeatedly bought and sold to give the impression of higher trading volume. The volume of activity on Polymarket has been significantly inflated by so-called wash trading in which users rapidly buy and sell the same contracts, according to a new study by Columbia University researchers https://t.co/kWTEDPn6IS — Bloomberg (@business) November 7, 2025 Key Findings: Artificial Trading Skews Polymarket’s True Activity The study...
