Prediction market Polymarket is allegedly experiencing significant wash trading, a practice where the same entity acts as both buyer and seller in a transaction, raising concerns about market manipulation. According to a Fortune article referencing research from blockchain analytics firms Chaos Labs and Inca Digital, it was found that a substantial portion of the trading volume—approximately one-third in the presidential market alone—could be attributed to this illegal activity. The article suggests that motivations behind wash trading could include aims to qualify for token giveaways or airdrop farming, especially since Polymarket is exploring the issuance of its own token. The piece contrasts these findings with claims from the previous week that a major trader was trying to influence election outcomes through manipulation, concluding that these trading patterns may not be as nefarious as previously thought. Industry experts noted that the reporting emphasizes the complexities of trading volume calculations within prediction markets and the need for detailed scrutiny of such claims.

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