The regulatory vacuum in prediction markets is revealing the darker side of human nature. Project teams can easily manipulate the market with just a few tweets, achieving nearly risk-free profits — this is not an isolated case but a common problem in the current Web3 ecosystem.

Without an effective market regulation framework, prediction markets have become a cash cow for project teams. They exploit information advantages and fan effects to manipulate prices arbitrarily in an environment lacking compliance. Retail investors are defenseless and can only passively endure.

If this loophole is not closed, similar chaos will continue to emerge. The development of Web3 needs to find a balance between open innovation and risk prevention, and the establishment of a regulatory framework is already urgent. Otherwise, market confidence will continue to erode, and the ecosystem will ultimately pay the price.