Polymarket Plans Internal Market-Making Desk, Raising Trust Concerns
Polymarket, a leading crypto prediction market, is assembling an in-house trading team to act as counterparties to user bets—a departure from traditional peer-to-peer prediction markets. The move aims to boost liquidity but has drawn criticism for potential conflicts of interest.
Market makers WOULD set prices and take opposing positions to traders, a model resembling bookmakers rather than neutral platforms. Critics argue this undermines decentralization principles while exposing Polymarket to accusations of profiting at users' expense, given its no-fee structure.
The decision follows Polymarket's surge in popularity during the 2024 U.S. election cycle. Industry observers note the timing risks eroding hard-won trust, particularly as the platform explores parlay betting products requiring sophisticated market-making capabilities.
