Prediction markets vs. insider trading: Founders admit blockchain transparency is the only defense

At Consensus Hong Kong 2026, founders discussed the evolving nature of prediction markets, framing them as vehicles for monetizing information rather than mere gambling platforms, comparing them to insurance underwriting or poker. Farokh Sarmad of DASTAN views the sector as a nascent, multi-trillion dollar asset class that financializes information. A major concern raised was insider trading, where high-profile leaks highlight information asymmetry risks. Founders acknowledged that while blockchain transparency can expose suspicious trading wallets, loopholes will always exist. Ultimately, the maturation of prediction markets into a recognized financial category depends on rising trading volumes, regulatory attention, stronger platform governance, clearer disclosure norms, and effective surveillance tools.

(Source：CoinDesk)