Only KYC can stop insider trading on prediction markets, Messari says
Insider trading is hard to curb on non-KYC prediction markets, but even identity checks do not fully eliminate abuse, according to Messari’s Austin Weiler.
Concerns over insider trading on prediction markets have intensified after a series of high-profile bets on geopolitical events, prompting fresh questions over whether it’s even feasible to curb such practices in the growing industry sector.
Preventing insider trading is realistically possible only on prediction markets applying Know Your Customer (KYC) measures, according to Austin Weiler, a research analyst at the blockchain intelligence firm Messari.
“For KYC’d platforms, the most effective mechanism is to restrict access upfront for users to specific markets,” Weiler told Cointelegraph, adding that state actors could be restricted from political or geopolitical markets.
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