What Are Prediction Markets? How Polymarket, Kalshi and Myriad Work

💡 DMK Insight

On-chain prediction markets like Myriad are shaking up how traders assess risk and make bets on future events. These platforms leverage blockchain technology to create decentralized environments where users can wager on outcomes, from sports to economic indicators, without the need for intermediaries. This shift is significant because it opens up new avenues for liquidity and price discovery, allowing traders to capitalize on real-time sentiment and data. But here’s the kicker: while these markets can offer unique insights, they also come with volatility and risks that traditional markets might not present. Traders should be cautious about the potential for manipulation and the inherent uncertainty in predicting outcomes. As these platforms grow, they could influence correlated assets, particularly in sectors like crypto and tech, where speculative trading is already rampant. Watch for key developments in regulatory frameworks around these platforms, as they could either bolster or hinder growth. Keep an eye on trading volumes and user engagement metrics to gauge market sentiment and potential price movements in related assets.