TechFlow news, October 30 — According to Fortune magazine, analysts from blockchain firms Chaos Labs and Inca Digital have discovered rampant wash trading on Polymarket. They found signs of fake trading activity on the platform, where buy and sell orders are frequently executed simultaneously and repeatedly to create a false impression of trading volume and market activity.
Chaos Labs and Inca Digital found that the reported trading volume for presidential election prediction markets on Polymarket's website does not match on-chain data. Inca estimates the actual trading volume in the presidential election prediction market to be around $1.75 billion, compared to Polymarket's reported figure of $2.7 billion. Chaos Labs attributes this discrepancy to Polymarket conflating trades of shares with dollars.
