Polymarket Under Pressure After Suspicious Crypto Bets Related To Venezuela
Three crypto whales from the Polymarket platform are said to have bet on the arrest of Nicolás Maduro a few hours before the official announcement. A case that raises suspicions of insider trading in DeFi. And not only that! It also tests the blockchain’s promise of transparency.
In brief
- Three Polymarket crypto whales suspected of benefiting from confidential information before Maduro’s arrest.
- The case reignites the debate on regulation and transparency of decentralized crypto markets.
Record gains on Polymarket: crypto between insight and suspicion
Onchain analysts have identified three Polymarket crypto wallets showing abnormal profits around the crisis in Venezuela. The most active reportedly cashed in nearly $195,000 before being removed from the network. Two other crypto wallets have since frozen, with no transactions for over a week.
A third trader, known under the pseudonym Sbet365, continues his crypto bets. He moved his tokens to a market predicting the removal of the supreme Iranian leader Ali Khamenei by January 31. This bet already records $28 million in volume on the Polymarket platform.
These bets placed just before official announcements cast doubt on the use of privileged information. Some observers fear that the crypto prediction market might become a fertile ground for speculative trading disguised as political analysis.
Crypto and geopolitics: an explosive mix of speculation and uncertainty
The Polymarket case illustrates the fragility of the decentralized market in the face of geopolitics. Crypto whales no longer limit themselves to bets on bitcoin or Ethereum. They also bet on international upheavals. This shift towards political speculation blurs the line between predictive gaming and financial manipulation.
Donald Trump further added to the confusion by claiming that Venezuelan “leakers” are now in prison. A statement that fuels suspicions of leaks discussed in the crypto community.
In any case, these events highlight the growing need for regulation in the crypto market. Even in an ecosystem based on blockchain transparency, control mechanisms remain weak. It remains to be seen whether this controversy will mark a step toward a more regulated crypto or toward an era of increased opacity.
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.