The team behind the P2P.me decentralized trading platform has publicly disclosed that it placed bets on a prediction market tied to its own fundraising results, acknowledging the move raised concerns about transparency and trust. The positions were opened on the Polymarket platform roughly 10 days before the funding round went live, wagering on whether the project would reach its $6 million fundraising target.
At the time the bets were placed, the team stated it had only an oral commitment of $3 million from venture firm Multicoin Capital, with no signed term sheets or guaranteed allocations. The funding round ultimately closed at $5.2 million, causing the market to resolve to a “no.”
Team Acknowledges Transparency Mistake and Returns Profits
Following the outcome, the team admitted that trading on outcomes they could potentially influence may damage confidence. It stated that failing to disclose the positions earlier was a mistake and recognized that such actions can erode trust even if the outcome was uncertain at the time.
The group confirmed that any profits generated reportedly totaling more than $23,480 — will be redirected into the project’s MetaDAO treasury. Additionally, all open positions on the prediction platform are being liquidated as part of corrective actions.
Regulatory Pressure on Prediction Markets Continues to Grow
The disclosure comes as prediction markets face increasing scrutiny from lawmakers concerned about insider trading risks. Legislators have proposed measures such as the PREDICT Act, which seeks to restrict government officials from participating in prediction markets tied to elections, legislation, and geopolitical developments.
Industry observers note that platforms have begun introducing safeguards and internal policies as regulatory pressure intensifies and calls for stricter oversight continue to rise.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.