Polymarket Recruits Chainalysis... Declares to Confront Insider Trading Controversy Head-On

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

According to cryptocurrency media outlet The Block on April 30 (local time), Polymarket has decided to adopt Chainalysis's surveillance technology to enhance transparency and prevent market manipulation on its platform. This move comes as Polymarket has recently been embroiled in controversy over insider trading and wash trading due to a surge in trading volume ahead of major events such as the US 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 participating in this investment round, illegal trading activities 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 building a robust monitoring system.

This collaboration comes at a time of increased scrutiny from financial authorities worldwide. 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 preemptively block acts of improper gain.

A Polymarket official emphasized, "Maintaining the integrity of the 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 an opportunity for the prediction market to establish itself as a reliable data source. Trading restriction rules for internal employees will also be applied more strictly.

Strengthening transparency in the prediction market is considered an essential prerequisite for Polymarket to successfully integrate into the mainstream financial market in the future. The results of the collaboration with Chainalysis will be a decisive yardstick in determining the success of investment attraction and future corporate valuation.

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