a16z Advisor: Predicts that only 1.3% of political contracts in the market have liquidity, recommends introducing AI agents to provide liquidity

Odaily Planet Daily reports that Stanford Graduate School of Business professor and a16z & Meta advisor Andy Hall posted on X platform stating that his team has developed a new dataset focused on political prediction markets, liquidity, and settlement rules. The research found that the vast majority of political contracts in prediction markets lack activity, with only 1.3% of contracts having sufficient liquidity. Kalshi and Polymarket rarely list contracts with identical rules, leading to further fragmentation of liquidity.

Andy Hall proposed four improvement suggestions: first, list contracts on core issues and collaborate with independent organizations to define markets of social concern; second, pay market makers to inject initial liquidity into political markets; third, introduce AI agents to trade in areas where humans do not participate, generating price references needed by society; fourth, establish unified definitions and settlement rules across platforms. Andy Hall believes these measures will attract traders seeking to hedge political risks and turn prediction markets into the truth machines society needs.

View Original
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Buenos Aires Court Orders Polymarket Blocked in Argentina

A Buenos Aires court has ordered the blocking of the prediction market platform Polymarket, citing it as an unauthorized online betting system. Access restrictions and app removals are mandated, highlighting rising regulatory scrutiny on such platforms.

Decrypt22m ago

New Address invests $38,700; predicts that Extended's first-day FDV will exceed $300 million

On March 17th, PolyBeats detected that a new address on Polymarket invested $38,700 to buy the option "Extended's FDV exceeds $300 million on its first day of listing," with a current probability of 36%. Extended is a non-custodial perpetual futures exchange based on Starknet, with core mechanisms including unified margin and multi-asset collateral. It previously raised $6.5 million in funding in April 2024.

GateNews35m ago

"Revise or I'll kill you" - Polymarket Gambler Issues Death Threats to Israeli Journalist After Losing $900,000

Israeli journalist Fabian received death threats after reporting on Iranian missiles landing. Losers who bet $14 million on prediction market Polymarket became dissatisfied, even fabricating screenshots to apply pressure. The incident reveals potential risks of prediction markets, suggesting that financial incentives may lead to illegal behavior and increased manipulation phenomena.

動區BlockTempo57m ago

When Coverage Becomes a Betting Game: Israeli War Correspondent Faces Death Threats from Polymarket Bettors

An Israeli journalist covering Iran's attack faced death threats from Polymarket bettors after reporting details that affected approximately $20 million in wagers, raising concerns about press freedom and public safety. The incident highlights the potential risks of prediction markets exerting pressure on media coverage and has sparked discussions about relevant regulations.

ChainNewsAbmedia1h ago

Argentina Completely Blocks Polymarket! Accused of Operating Without KYC, Government Suspected of "Inflation Data" Insider Trading

A judge in Buenos Aires, Argentina ordered the blocking of crypto prediction market platform Polymarket on March 16, 2026, due to unusual betting activity that occurred 15 minutes before official inflation data was released, raising insider trading concerns. The platform was accused of operating without authorization and lacking identity verification among other legal violations. The court ordered the website to be shut down and related applications to be removed from app stores, but as of that afternoon it remained normally accessible.

動區BlockTempo1h ago

Polymarket's trading volume broke through $2.1 billion last week, setting a new single-week record high

Gate News, on March 17, according to Polymarket team developer Suhail Kakar citing Dune data, Polymarket's weekly trading volume last week broke through 2.1 billion dollars, setting a new historical high for the platform's weekly transaction volume.

GateNews1h ago
Comment
0/400
No comments