Polymarket Recruits Chainalysis...Declares Head-on Breakthrough in Insider Trading Controversy

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Polymarket, the world's largest prediction market, has brought in blockchain analytics firm Chainalysis to shed the labels of insider trading and market manipulation, making a decisive move to prove its $1.5 billion valuation.

According to cryptocurrency specialized media The Block on April 30 (local time), Polymarket has decided to adopt Chainalysis's monitoring technology to enhance transparency within its platform and prevent market manipulation. This measure comes as Polymarket has recently been embroiled in controversy over insider trading and wash trading due to a surge in transaction volume ahead of major events such as the U.S. presidential election.

Polymarket is currently seeking to raise $100 million in new investment, hoping to achieve a company valuation of approximately $1.5 billion. While leading venture capitalists are considering participation in this investment round, illegal trading activities occurring on the platform have been identified as the biggest obstacle to investment. Therefore, Polymarket's strategy is to secure the trust of institutional investors by establishing a robust monitoring system.

This collaboration comes at a time when financial authorities worldwide are intensifying their surveillance. In particular, the French gambling regulatory authority has investigated whether Polymarket's operations violate local laws and has even suggested the possibility of a complete ban on the platform. Polymarket plans to use Chainalysis's on-chain analysis tools to track suspicious trading patterns in real-time and proactively prevent acts of improper gain.

A Polymarket official emphasized, "Maintaining the integrity of our platform is our top priority, and we will not tolerate any form of market manipulation." The company expects that the introduction of this system will not only be a regulatory response but also serve as an opportunity for prediction markets to establish themselves as reliable data sources. Regulations restricting trading by internal employees will also be applied more strictly.

Strengthening transparency in the prediction market is considered an essential prerequisite for Polymarket to establish itself in the mainstream financial market in the future. The results of the collaboration with Chainalysis will be a decisive yardstick for determining the success or failure of investment attraction and future company valuation.

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