Polymarket volume inflated by ‘artificial’ activity: Columbia researchers
Crypto Briefing
Columbia researchers found Polymarket's trading volume is inflated by wash trading, especially in sports markets.Summary
Researchers from Columbia University discovered that the trading volume on the blockchain-based prediction market platform, Polymarket, is artificially inflated due to wash trading. Wash trading is defined as the practice where traders repeatedly buy and sell the same contracts to generate fake volume figures. The study specifically noted that this artificial trading activity was more pronounced within Polymarket's sports-related markets compared to its election or cryptocurrency markets. In response, a Polymarket spokesperson stated that the company is currently reviewing the findings of the study.
(Source：Crypto Briefing)