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Bot-Like Bettors Exploit Polymarket for $40M in Arbitrage Profits, Study Reveals
Bot-Like Bettors Exploit Polymarket for $40M in Arbitrage Profits, Study Reveals
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BTCCSquare news:
Automated traders have siphoned nearly $40 million from Polymarket's prediction markets, with political wagers—particularly on the 2024 U.S. elections—proving most vulnerable to exploitation. The decentralized platform's market-driven odds mechanism created fertile ground for arbitrage, as detailed in an August 5 arXiv study by researchers from IMDEA Networks Institute.
Three dominant wallets executed over 10,200 bets to capture $4.2 million in risk-free profits, suggesting sophisticated algorithmic strategies. Unlike traditional bookmakers, Polymarket's peer-to-peer model allowed these actors to capitalize on pricing inefficiencies at scale, raising questions about sustainability in decentralized betting ecosystems.
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