By Anthony Marcus, correspondent – Eurasia Business News. November 23, 2024. Article no 1316.

Polymarket is a decentralized prediction market platform that allows users to bet on the outcomes of various real-world events using cryptocurrency. Launched in 2020 by Shayne Coplan, Polymarket has quickly become one of the largest platforms of its kind, leveraging blockchain technology to provide a transparent and secure betting environment.

Key Features of Polymarket

Decentralized Betting: Polymarket operates on the Polygon blockchain, enabling users to engage in betting without traditional financial intermediaries. This setup enhances user privacy and accessibility, as it does not require Know Your Customer (KYC) procedures.

Event Contracts: Users can trade shares representing the likelihood of specific events occurring, such as political elections, economic indicators, and entertainment outcomes. Each event is framed as a question, and participants can buy or sell shares based on their predictions.

Cryptocurrency Transactions: Bets are placed using USDC, a stablecoin pegged to the U.S. dollar, which helps maintain liquidity and stability in transactions. This reduces the volatility typically associated with cryptocurrencies like Bitcoin.

Market Dynamics

User Growth: As of October 2024, Polymarket reported nearly $2 billion in monthly trading volume and over 191,000 active users, reflecting significant growth from previous months. The platform has seen increased interest during major events, such as the 2024 U.S. presidential election.

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Smart Contracts: Transactions on Polymarket are managed by smart contracts, ensuring that all trades are executed transparently and securely. This technology guarantees that once a bet is placed, it cannot be altered or tampered with.

Regulatory Challenges

Polymarket faced scrutiny from the Commodity Futures Trading Commission (CFTC) in early 2022 for operating without proper registration as a derivatives market. The platform was fined $1.4 million and subsequently moved its operations offshore to comply with regulatory requirements.

Recent Developments

The platform gained significant attention during the 2024 U.S. presidential election, with substantial betting activity on candidates like Donald Trump and Kamala Harris. Analysts have noted instances of market manipulation and wash trading, raising questions about the reliability of its odds.

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On November 13 the F.B.I. carried out a search at the New York City home of Shayne Coplan, the founder of the betting website Polymarket. The raid was part of a criminal investigation by the F.B.I. and the U.S. attorney’s office for the Southern District of New York, one of the people said. The investigation appears focused on whether Mr. Coplan, 26, ran Polymarket as an unlicensed commodities exchange, allowing users in the United States to place bets in violation of a settlement with the U.S. government, the person said. Polymarket rose to prominence this fall for offering odds on the presidential election.

Polymarket represents an innovative approach to prediction markets by combining cryptocurrency with event betting, offering users a unique way to engage with future events while navigating complex regulatory landscapes.

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© Copyright 2024 – Eurasia Business News. Article no. 1291