A study highlighting alleged manipulation of Polymarket’s 5-minute Bitcoin (CRYPTO: BTC) binary contracts has sparked fresh scrutiny for the decentralized prediction platform.
Last-Minute Deception?
The paper, co-authored by researchers from Stanford University and Singapore Management University, was published on July 1 and first reported by Bloomberg.
The contract in question is binary.
It delivers a $1 payout if Bitcoin’s price at the end of the 5-minute interval exceeds its price at the start of the interval; otherwise, the payout is $0 The study found that traders game the contract by buying BTC on Binance during the closing seconds to influence the settlement price higher than the opening price.
