Polymarket Volume Inflated by Wash Trading, Columbia Study Reveals
Polymarket, a leading crypto prediction platform, has seen its trading volumes artificially inflated by wash trading, according to a Columbia University study. Nearly 25% of all transactions over the past three years may stem from this manipulative practice, where users rapidly buy and sell the same contracts to create false activity.
The research clarifies that Polymarket itself did not engage in wash trading, but its crypto-based infrastructure may have enabled it. A company representative declined immediate comment, stating the study is under review.
Wash trading remains a persistent challenge in decentralized prediction markets, undermining trust in reported volumes. The findings echo 2024 concerns about artificial activity distorting market perceptions.
