Ethereum ETH/USD co-founder, Vitalik Buterin, threw his support behind the cryptocurrency-based prediction market Polymarket, emphasizing its value in providing accurate information and preventing misinformation.
What Happened: On Monday, Buterin argued in favor of the so-called decentralized prediction market that has grown in popularity this U.S. election season.
The defense came in response to an X user finding issues with the multiple events on Polymarket’s site betting on the ongoing conflict in the Middle East, involving Israel, Iran, and Hezbollah.
“It feels wrong that Polymarket has an entire Hezbollah betting section that makes a war look like a football game to bet on,” the user said.
Buterin supported the platform, saying that it doubled up as a credible news website for viewers who otherwise are exposed to disinformation on social media.
“There’s all kinds of people (incl elites) on Twitter and the internet making harmful and inaccurate predictions about conflicts, and being able to go and see if people with actual skin in the game think that something has a 2% chance or a 50% chance is a valuable feature that can help keep people sane,” Buterin made his point.
He added that the intention is not to “make money from bad stuff happening,” but to create an environment where accurate information flows, without the intervention of government agencies and corporate censors.
That said, the cryptocurrency mogul opposed assassination predictions, drawing a line for events that can incentivize illegal actions.
Buterin’s endorsement comes in the context of Polymarket’s popularity, particularly during the U.S. election season. The platform allows users to place bets on various event outcomes, thereby creating an environment where speech has consequences. “It’s not about ‘make money from bad stuff happening’, it’s about creating an environment where speech has consequences,” Buterin said.
Why It Matters: Buterin’s support for Polymarket is not surprising, considering he has skin in the game. In May, he was among the notable backers of Polymarket’s $70 million funding round, which also saw investments by billionaire investor Peter Thiel’s Founders Fund.
Polymarket was reportedly preparing for fresh funding, along with speculations of a token launch. The token was projected to play a vital role in the platform’s operations.
Polymarket, which is built atop Ethereum's Layer-2 chain Polygon MATIC/USD, facilitates buying and selling outcome shares using cryptocurrencies. The shares can be redeemed for $1 if the outcome is correct and become worthless if it’s incorrect.
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