Why Polymarket Attracts Insider Traders: The Uncomfortable Truth About Skin in the Game
Polymarket’s core mechanism—participants risking real capital on event outcomes—produces a well-documented advantage: forecasts improve when money is at stake. Prediction accuracy on Polymarket frequently outperforms expert opinion, polling data, and centralized betting markets because traders with strong conviction put resources behind their beliefs. That mechanism, however, carries a secondary consequence that the platform’s designers did […]