Crypto Company Defends Insider Trading on Polymarket
A crypto company admitted that it placed bets on its own fundraising round. On Friday, P2P.me posted:
“10 days before our raise went live, we placed bets that we’d hit our $6M+ target. At that point we had one oral commitment from Multicoin ($3M) – no signed term sheets, no guaranteed allocations, nothing binding. We were betting on ourselves. We’d told the market we were raising over $6M. We believed we could. That bet was our way of backing our word with our own money at a moment when the outcome was genuinely uncertain.”
P2P.me bought positions in Polymarket’s market on the amount of money committed to the P2P public protocol sale. According to the company’s X post, P2P.me sold its positions at $35,212 after buying into them at $20,500.
This incident comes as insider trading concerns continue roiling Congress.
Two more prediction market bills
Sen. Jeff Merkley and Rep. Jamie Raskin introduced the Stop Corrupt Bets Act on Friday. These bills would amend the Commodities Exchange Act to prohibit:
- Election contracts
- Contracts on actions by any of the three branches of government
- Sports contracts
- Contracts on military actions
It is the latest bill to impose limits on the types of contracts that prediction markets can offer by statute.
Kalshi and Polymarket have different approaches to these types of markets to begin with.
Both platforms have taken steps to improve responses to insider trading. Kalshi announced new preemptive measures to block athletes and politicians from trading on their own matches and races. Polymarket also updated its integrity rules to clarify prohibited types of information.
The congressional alarm has not reduced enthusiasm among investors hoping to get a slice of the prediction market pie.
Polymarket gets $600 million, Kalshi to offer margin trading
Intercontinental Exchange completed a $600 million cash investment in Polymarket. Friday’s announcement follows Intercontinental Exchange’s initial $1 billion investment in October 2025.
Kalshi has also been approved for margin trading. According to Bloomberg, margin trading will only be available to institutional traders initially.
Kalshi just cleared a major hurdle with approval to offer margin trading.
Users, especially hedge funds and institutional players, will be able to take leveraged positions on event outcomes, pushing prediction markets closer to traditional derivatives trading.
CEO Tarek Mansour… pic.twitter.com/LVjzlsLBa6
— Frank Chaparro (@fintechfrank) March 27, 2026
Prediction markets may be getting blowback from Congress, but that hasn’t stopped the industry from continuing to grow in 2026.