A Bloomberg report reveals that over 100,000 accounts on the Polymarket platform have each incurred losses of at least $1,000, nearly double the number of accounts that achieved similar profits. In stark contrast, approximately 823 highly active accounts, identified as bots, have collectively earned around $131 million. These bots, representing only about 5% of total wallets, generate 75% of Polymarket's trading volume through high-frequency trading across multiple markets.
The report highlights that these automated programs dominate the prediction market, which boasts an annual trading volume exceeding $50 billion. Bots secure better prices by entering trades earlier, leading to higher returns. Meanwhile, ordinary traders often execute trades too late, resulting in losses despite correct market predictions. Since 2022, 68.8% of traders analyzing public opinion and geopolitical events have reported losses, with frequent trading near extreme price levels contributing to their financial setbacks.
Polymarket Bots Reap $131M as Most Traders Face Losses
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