Prediction market participants have a different take on what regulators see as a problem. Many insiders view insider trading in these markets not as a flaw but as an inherent feature—part of how price discovery works. But as lawmakers turn up the heat with increased scrutiny, the gap between these two viewpoints keeps widening. The debate touches on whether prediction markets can maintain their core mechanics while satisfying regulatory expectations.
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OnchainFortuneTeller
· 16h ago
Insider trading as a characteristic sale? The regulators probably haven't understood prediction markets.
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Layer2Observer
· 01-07 21:33
Is insider trading a price discovery mechanism? That's an interesting point, but it needs one clarification—the "features" participants talk about and the "vulnerabilities" seen by regulators are essentially the same thing. From an engineering perspective, it's like saying a bug is a feature; the implication is that it can't be fixed or that fixing it would cause a crash.
The key is to look at the data—how many markets actually become more efficient because of this "insider information advantage"? Or is it just an excuse for certain big players to maximize profits? There's indeed a misconception here; we shouldn't confuse good liquidity with accurate price discovery.
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liquidation_surfer
· 01-06 07:02
Regulators and participants are like standing in two parallel universes—one says it's a bug, and the other says it's a feature... hilarious, they'll never be on the same page.
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MEVvictim
· 01-06 02:52
Regulators are really overthinking it. The informational advantage of prediction markets is fundamentally about pricing... What's the point of continuing like this?
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BearMarketLightning
· 01-06 02:50
Insider trading is a feature, not a bug. The logic is brilliant... No way regulators would agree.
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SybilSlayer
· 01-06 02:50
Regulation vs. market efficiency, an eternal opposition. Is insider trading considered a bug or a feature in prediction markets? Essentially, it's about who gets to define the rules of the game.
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PebbleHander
· 01-06 02:49
To be honest, I really can't understand the one-size-fits-all approach of regulation. Insider trading is originally part of price discovery in prediction markets; why turn it into a "problem"? How are we supposed to play like this...
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RugpullSurvivor
· 01-06 02:38
Regulators are relentless, but market players remain quite calm... Is insider trading really a bug or a feature?
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SocialAnxietyStaker
· 01-06 02:33
Regulation and the market are always hurting each other... Insider trading is actually a false proposition in prediction markets; discovering the price itself relies on information asymmetry.
Prediction market participants have a different take on what regulators see as a problem. Many insiders view insider trading in these markets not as a flaw but as an inherent feature—part of how price discovery works. But as lawmakers turn up the heat with increased scrutiny, the gap between these two viewpoints keeps widening. The debate touches on whether prediction markets can maintain their core mechanics while satisfying regulatory expectations.