Columbia Study Finds 25% of Polymarket Trades Artificially Inflated

A new study from Columbia University has revealed a concerning phenomenon in decentralized prediction market Polymarket: a significant prevalence of wash trading, impacting approximately 25% of trades. The research, led by Professor Rajiv Sethi and Yash Kanoria, delves into the intricate world of transaction data to identify this artificially inflated activity. This revelation casts doubt on the integrity of Polymarket, potentially affecting user trust and market dynamics. While no immediate systemic risk has been identified for the broader cryptocurrency ecosystem, the study could significantly influence future platform operations and user behavior.