Polymarket Faces Allegations of Inflated Trading Volumes
Paradigm co-founder Matt Huang has spotlighted research suggesting prediction market Polymarket may be double-counting trades, artificially boosting reported volumes. The issue stems from smart contracts emitting duplicate OrderFilled events, causing analytics platforms to overstate activity by ~100%.
The revelation sparked immediate backlash from Polymarket's team, with critics noting Paradigm's stake in rival platform Kalshi raises questions about motive. Technical analysis shows each trade generates two identical events, creating phantom volume in public datasets.