Prediction markets emerge as speculative ‘arbitrage arena’ for crypto traders

Prediction markets offer traders more upside than holding the underlying spot crypto, but AI bots and accounts with a 100% win rate raise suspicions of insider trading.

Blockchain-based prediction markets are drawing in more speculators as traders look for returns that surpass simply holding spot cryptocurrencies, according to a new report.

Prediction markets are emerging as a new speculative arena for traders, pitting casual retail participants against data-driven, professional traders, creating “extreme information asymmetry and meaningful arbitrage windows,” according to a Monday report from crypto research company 10X Research.

While sports bets account for the lion’s share of activity on these platforms, Bitcoin (BTC) and crypto-outcome related events are presenting more niche opportunities that digital asset traders can’t ignore, according to 10X.

Read more