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Title: Polymarket Volume Inflated by 'Artificial' Activity, Study Finds

Link: https://tech.slashdot.org/story/25/11/07/1414...

An anonymous reader shares a report: The volume of activity on Polymarket,
one of the most popular prediction markets, 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. The
"artificial trading," as the authors call it, varied over time but accounted
for an average of 25% of all buying and selling on Polymarket over the past
three years, the researchers concluded. The paper, which has not undergone
peer review, was posted Thursday on the open-access research platform SSRN.
The authors do not suggest that Polymarket itself was responsible for the
wash trading, but they point to elements of the exchange's crypto-based
structure that make it possible.

Read more of this story at Slashdot.

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