February 27 News: Polymarket recently exposed an insider trading incident where individuals used non-public information for profit. According to reports, 8 of the top 10 addresses with the highest gains are linked to insiders who profited over $1.2 million by betting on ZachXBT’s investigation into Axiom insider trading.
This incident demonstrates that in decentralized prediction markets, having early access to investigation results can create significant asymmetrical advantages, distort market prices and forecasts, and harm ordinary investors. Data shows that 52 regular addresses lost between $10,000 and over $100,000, totaling more than $1.6 million in losses, which were offset by insider gains.
On-chain analysis firm Lookonchain identified 12 suspected insider wallets with total profits of about $1.02 million. Notably, address 0x1d9af60c679cd0b577c3c4ccb4b1a4be4174426d (predictorxyz) made $411,600 in Axiom market trades, while two other addresses earned $354,000 and $144,000 respectively, each participating in only one market trade. WuBlockchain data shows over 3,630 addresses engaged in such trades, with 56.2% of participants ultimately making a profit.
From a macro perspective, this behavior is similar to front-running in traditional securities markets, revealing the tension between transparency and abuse in DeFi platforms. ZachXBT’s disclosures about Axiom indicate that on-chain transparency can both expose insider information and facilitate unfair, information-based trading.
Currently, decentralized prediction markets lack enforceable rules against insider trading, and structural abuse issues remain difficult to resolve. This incident may prompt regulators and market participants to pay closer attention to platform compliance and fairness.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin ETFs See Daily Outflow of $35.9M While Solana ETFs Continue Weekly Growth
Gate News bot message, according to the March 2 update, Bitcoin ETFs recorded a 1-day net outflow of 548 BTC (-$35.9M), while maintaining a 7-day net inflow of 11,213 BTC (+$734.4M).
Ethereum ETFs showed a 1-day net outflow of 12,307 ETH (-$23.75M), with a 7-day net inflow of 36,108 ETH (+$69.69M)
GateNews1h ago
$LINK, $PIPPIN, and $INJ Lead the Pack of Top AI Agent Projects
The essay discusses the top AI agent projects in the cryptocurrency market based on social activity metrics from LunarCrush. Chainlink ($LINK) leads with the highest engagement, followed by Pippin ($PIPPIN) and Injective ($INJ), highlighting the active trend of AI in crypto.
BlockChainReporter2h ago
【Morning Market Brief】 Cryptocurrency market fluctuates... Bitcoin $68,929, Ethereum $2,041
The cryptocurrency market trend is mixed, with Bitcoin and Ethereum rising by 4.50% and 4.47% respectively. Mainstream competing coins are showing divergence, with a total market value of approximately $2.75 trillion. Both the DeFi and stablecoin markets have experienced growth, and derivatives trading volume remains active.
TechubNews3h ago
CME Group adds ADA, LINK, XLM futures, and states that its crypto products cover over 75% of the crypto market capitalization
PANews March 2 News, CME Group announced on Twitter that CME has launched futures for Cardano(ADA), Chainlink(LINK), and Stellar(XLM) (including large contracts, micro contracts, and cash-settled), covering over 75% of the total cryptocurrency market capitalization when combined with BTC/ETH/SOL/XRP products; and also mentioned Nasdaq CME Crypto
GateNews7h ago
Mt. Gox Bankruptcy Case May See Resolution with Proposed Bitcoin Hard Fork
Former Mt. Gox CEO Mark Karpeles has proposed a Bitcoin hard fork to recover 80,000 BTC stolen from the exchange over a decade ago.
The hard fork would see the BTC, worth $5 billion and currently held by a single wallet, moved to a new address without the requirement of the original private k
CryptoNewsFlash7h ago
Sanae Takashi Denies Connection! Japanese media NoBorder issues tokens, claiming inspiration from Audrey Tang's digital democracy mechanism
Japanese media organization NoBorder recently issued the SANAE Token on Solana, aiming to promote the "Japan is Back" project and explore updates to democratic systems. Sanae Takashi has explicitly stated she is unaware, sparking controversy and a sharp decline in the token price. NoBorder plans to facilitate discussions through citizen feedback collection and AI analysis, and introduce token incentives, but holding a higher proportion of operational shares has raised market concerns about risks.
ChainNewsAbmedia8h ago
