The Polymarket, the world’s largest decentralized proposition market, is under fire after a controversial outcome that has raised concerns with potential management manipulation in a high political stake.
A platform betting market asked if US President Donald Trump would accept a rare deal with Earth’s minerals in Ukraine before April. Despite no such event taking place, the market has been fixed as “yes,” which has sparked a backlash from industry users and observers.
This could point out a “management attack” in which a whale from the UMA protocol “used its voting power to manipulate Oracle, allowing the market to resolve the wrong results and to earn successfully,” according to crypto threat researcher Vladimir S.
“Tycoon submitted 5 million tokens through three accounts, which provides 25% of total votes. Polymarket is dedicated to prevent this from happening again,” he wrote in a post of March 26 x.
Source: Vladimir S.
Polymarket uses UMA’s protocol blockchain oracles for external data to resolve market results and verify real-world events.
Polymarket data shows the market accumulated by more than $ 7 million in trading volume before organizing on March 25th.
Source: Polymarket
However, not all of them agree that this is a coordinated attack. A pseudonymous who uses polymarket, tenadome, argued that the outcome was a result of neglect.
“No ‘Tycoon’ to ‘manipulate the oracle,’ Written by Tenadome on a March 26 x PostAdding:
“The voters who decided this outcome were both UMA’s whales that voted for each dispute, which (1) was largely associated with/in the UMA group and (2) did not trade in the polymarket, and they only chose to ignore the clarification to get their rewards and avoid breaks.”
Related: Polymarket Whale raised Trump’s odds, which sparks manipulation concerns
Polymarket will not release a refund
Despite the user’s failure, polymarket moderators say no refunds will be released.
“We know the situation about the Ukraine Rare Earth market. This market has resolved against our users’ expectations and our clarification,” said the Polymarket moderator Tanner, added:
“Unfortunately, because this is not a market failure, we will not issue refunds.”
Source: Vladimir S.
The Polymarket said it would build new monitoring systems to ensure that the “unmistakable situation” will never happen again.
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US election is gasoline 565% prediction markets rising
The prophecy markets have seen significant growth in the third quarter of 2024, driven by bets in the U.S. president election.
Top three crypto predictions market. Source: Co ringecko
The amount of betting on Ros’s guest marketsE More than 565% in Q3 to reach $ 3.1 billion throughout the three largest markets, from just $ 463.3 million in the second quarter.
The Polymarket, the most popular like the decentralized platform, led the market with more than a 99% part in September.
https://www.youtube.com/watch?v=3Dyench-2IS
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