Analysts Uncover Rampant Wash Trading on Polymarket

According to Odaily, analysts from blockchain companies Chaos Labs and Inca Digital have identified widespread wash trading on Polymarket. Despite the platform's odds being widely shared on social media and mainstream media, the analysts discovered signs of fake trading activities. Wash trading, a form of market manipulation, involves simultaneous and repeated buying and selling to create the illusion of trading volume and activity. Chaos Labs revealed that approximately one-third of the trading volume in Polymarket's presidential election market is attributed to fake trades. Inca Digital also found that a significant portion of the market's trading volume could be due to potential wash trading.