The team behind the P2P.me decentralized trading platform has revealed that it has opened a position on the Polymarket prediction market in connection with its recent funding.
According to disclosures published on the X social media platform, the team opened the position 10 days before the funding began, betting on whether the project would reach its $6 million funding goal.
At the time the position was advertised, P2P.me had received only one “verbal commitment” from venture firm Multicoin Capital for $3 million in funding, with “no term sheet signed” and “no allocation guaranteed,” the team said.
However, the project only raised $5.2 million in a funding round and the market said no. In response to the results, the team said the following.
“Trading based on outcomes you can influence undermines trust. We don’t believe in trading based on deals that are won, but we recognize that reasonable people may view it differently. We intentionally named our account ‘P2P Team’ to communicate our presence as a marketing signal.” But intentions and actions are not the same. It was our mistake not to disclose at the time. ”
According to the P2P.me team, all profits from prediction market positions will be returned to the project’s MetaDAO vault, which is the reserve fund of the Decentralized Autonomous Organization (DAO) that manages the platform.
The team also said it would liquidate all open positions on Polymarket and adopt a “formal company policy” regarding prediction market trading activity.
Cointelegraph contacted P2P.me about this disclosure but did not receive a response by the time of publication.
Prediction markets have come under increased scrutiny from US lawmakers regarding insider trading activity, and in response, popular prediction market platforms such as Polymarket and Calci have announced measures to curb insider trading.
Related: Federal regulation looms as 11 states take aim at prediction markets
US lawmakers take steps to curb insider trading activity in prediction markets
U.S. lawmakers are seeking to limit insider trading activity in prediction markets, particularly in relation to geopolitical issues involving elections, legislation, and national security.
Congressmen Adrian Smith and Nikki Budzinski on Wednesday introduced the Real-Time Exploitation and Deceptive Insider Congressional Trading Act (also known as the PREDICT Act), which would ban the president and members of Congress from participating in prediction markets.
A competing bill aimed at curbing political insider trading activity on prediction market platforms was also introduced Thursday.
magazine: IronClaw is OpenClaw’s rival, Olas launches bot for Polymarket — AI Eye
