Polymarket, the world's largest decentralized prediction market, is under fire after a controversial result was concerned concerning the potential manipulation of governance manipulation in a political bet with high missions.
A betting market on the platform asked whether the US President Donald Trump would accept a mineral contract with rare earth before April. Despite such an event, the market was populated as “yes” and triggered a counter response from users and industry observers.
This can indicate a “governance attack” by which a whale from the UMA protocol “used its voice authority to control the oracle and enable the market to settle false results and successfully,” said the crypto threat researcher Vladimir S.
“The Tycoon has thrown 5 million tokens on three accounts and made 25% of the full votes. Polymarket strives to stop this again,” he wrote in a post on March 26.
Source: Vladimir S.
Polymarket uses the UMA Protocol blockchain oracles for external data to surround the market results and confirm real events.
Polymarket data show that the market has gathered greater than 7 million US dollars in trading volume before setting itself on March twenty fifth.
Source: polymarket
Nevertheless, not everyone agrees that it was a coordinated attack. A pseudonymous polymarket user, tenadome, argued that the result was the results of negligence.
“There isn’t any” Tycoon “that manipulated the oracle,” Tenadome wrote in a post dated March 26, and added:
“The voters who’ve decided this result are the identical UMA whales that vote in every dispute, which (1) are largely connected with/the UMA team and (2) don’t act with polymarket, they usually have only determined to disregard clarification to keep up and avoid their rewards.”
Polymarket is not going to issue a refund
Despite the frustration of the users, Polymarket said moderators that no reimbursements were issued.
“We are aware of the situation in relation to the Ukraine rare market.
“Since this was not a market failure, we cannot issue reimbursements.”
Source: Vladimir S.
Polymarket said that latest surveillance systems would construct as much as make sure that this “unprecedented situation” is not going to appear again.
US elections Fuel 565% predictive markets increase
The predictive markets recorded considerable growth within the third quarter of 2024, which was resulting from bets on the United States' presidential elections.
Top three crypto forecast markets. Source: Coingecko
The betting volume for the predictive markets rose by 565% within the third quarter and reached 3.1 billion dollars within the three largest markets, in comparison with only $ 463.3 million within the second quarter.
Polymarket, one of the best known, such a decentralized platform, dominated the market with a share of over 99% from September.
