Polymarket carries new team risks.

Polymarket Plans to Trade Directly with Its Users

Polymarket is exploring the creation of an internal market-making team to trade directly with its users. This shift is being likened to a traditional sports betting site by critics. Harry Crane, a statistics professor, expresses that this move will provide limited revenue growth and carries significant public relations, legal, and trust issues.

Risks and Concerns

Crane highlights potential data advantages and similarities to controversial situations like Kalshi and NoVig. Observers are concerned that this transformation could erode Polymarket’s reputation as a market-driven probability measure. This situation emerges as a significant factor in the 2024 election cycle.