The platform forbids illegal activity, which includes insider trading in the U.S. But with a few taps on a smartphone, anyone with privileged knowledge can now make a quick buck (or a hundred thousand). Polymarket and other prediction markets—the sanitized, industry-favored term for sites that let you wager on just about anything—have been dogged by accusations of insider trading in markets of all flavors. How did a Polymarket user know that Lady Gaga, Cardi B, and Ricky Martin would make surprise appearances during the Super Bowl halftime show, but that Drake and Travis Scott wouldn’t? Shady bets on war are even stranger and more disturbing. They risk unleashing an entirely new kind of national-security threat. The U.S. caught a break: The Venezuela and Iran strikes were not thwarted by insider traders whose bets could have prompted swift retaliation. The next time, we may not be so lucky.
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