Polymarket to Hire In-House Trading Team, Raising Concerns
- Polymarket is hiring an internal market-making team to trade against customers, a move that may blur lines with traditional sportsbooks.
- This strategy follows a similar approach by rival Kalshi, which aims to enhance liquidity and user experience.
- Experts suggest this shift could undermine Polymarket’s identity as a prediction market and lead to potential legal issues.
- The in-house desk may offer parlays through an RFQ protocol, requiring significant capital and potentially giving the house an edge.
- Concerns have been raised about conflicts of interest and the impact on trust among users who prefer prediction markets over sportsbooks.
The decision to form an internal trading desk could significantly alter Polymarket’s operational model, moving it closer to a sportsbook structure where users trade against the house rather than each other. This change risks eroding the platform’s reputation as a reliable barometer of real-world probabilities.
As Polymarket embarks on this new strategy, it faces challenges related to brand trust and potential legal ramifications from its operations—concerns highlighted by experts regarding its long-term viability and ethical standing in the market.
