Polymarket creator defends platform’s ethics after election betting boom

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According to the the owner of Polymarket, the platform is entirely nonpartisan and does not function as a political website.

Shaye Coplan, the proprietor of Polymarket, has characterized the prediction platform as entirely nonpartisan. The New York Times’ recent article regarding the Polygon-based platform serves as the catalyst for Coplan’s post on X.

Polymarket was the subject of the New York Times article, which emphasized its 64% likelihood of Trump winning the election and the platform’s endorsement by Elon Musk. Nevertheless, Coplan observed that Polymarket is not a political website, despite the fact that the US elections have heightened its prominence. The objective remains to “demystify the real-world events that are most important to you by leveraging the strength of free markets,” he stated.

In a world where algorithms only reinforce established opinions to keep users engaged, Polymarket is more of a “reality check,” according to Coplan. Consequently, it exclusively furnishes impartial data that accurately represents the market’s current state.

He stated: “We are merely market enthusiasts who believe that prediction markets offer the public a much-needed alternative data source.”

Coplan acknowledged that the US elections have had a substantial impact on Polymarket’s popularity, and he emphasized that the platform takes this responsibility seriously. Polymarket’s prominence surged in the months preceding the presidential elections, as it accurately predicted that President Biden would withdraw from the race, despite the fact that it has been in existence for several years.

Despite the extensive publicity surrounding Polymarket, a significant number of individuals maintain that its predictions do not accurately represent the public’s stance on the upcoming US elections. Angela Steffens, the founder of Crypto, disputes the notion that the Polymarket serves as a reality check. She points out that the wager does not correspond to ballots, as the bettors are not located in the United States. Nevertheless, she acknowledged that it could serve as an alternative source of information.

Coplan also refuted rumors regarding the impact of external factors on the platform’s operations. He maintains that venture capital magnate Peter Thiel lacks authority over the organization. Despite the fact that Peter Thiel’s VC, Founders Fund, is a minority investor in the company, he stated that this does not affect the operation of Polymarket, as the platform is entirely transparent.

Coplan went on to elaborate on the platform’s functionality, pointing out that the market determines the price. Individuals who disagree with the odds can easily take advantage of this by investing in the side they believe is pricing at a low level.

Simultaneously, Polymarket had previously refuted allegations of market manipulation that emerged following investigations that revealed four accounts associated with a single individual significantly influenced the odds in favor of Trump. Polymarket identified the trader who placed over $26 million on Trump as a French resident who placed the wagers based on personal views.

The platform has experienced a substantial increase in trading volume, with nearly $2.4 billion in transactions since January, as Polymarket has garnered mainstream attention. Nevertheless, the volume of the market is significant, but the open interest is less than $300 million, indicating that it is exceedingly illiquid.

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