a16z Advisor: Predicts that only 1.3% of political contracts in the market have liquidity, recommends introducing AI agents to provide liquidity

Odaily Planet Daily reports that Stanford Graduate School of Business professor and a16z & Meta advisor Andy Hall posted on X platform stating that his team has developed a new dataset focused on political prediction markets, liquidity, and settlement rules. The research found that the vast majority of political contracts in prediction markets lack activity, with only 1.3% of contracts having sufficient liquidity. Kalshi and Polymarket rarely list contracts with identical rules, leading to further fragmentation of liquidity.

Andy Hall proposed four improvement suggestions: first, list contracts on core issues and collaborate with independent organizations to define markets of social concern; second, pay market makers to inject initial liquidity into political markets; third, introduce AI agents to trade in areas where humans do not participate, generating price references needed by society; fourth, establish unified definitions and settlement rules across platforms. Andy Hall believes these measures will attract traders seeking to hedge political risks and turn prediction markets into the truth machines society needs.

View Original
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

New Wallet "Roeyha2026" Gains $96.8K on Iran Strike Prediction Bet

Gate News bot message, A newly created wallet named "Roeyha2026" spent $50K eleven hours ago on a prediction market bet that the US would strike Iran by March 1, 2026. The wallet has gained $96.8K since placing the bet.

GateNews2h ago

Trump confirms U.S. strikes Iran, related prediction markets are about to settle

BlockBeats News, February 28 — Trump’s statement confirms U.S. strikes on Iran: Not long ago, the United States launched a major military operation in Iran. We will destroy Iran’s missiles and level their missile industry. Iran can never possess nuclear weapons. The U.S. will ensure Iran does not acquire nuclear weapons and will completely destroy Iran’s navy. According to PolyBeats monitoring, the probability of various markets predicting U.S. strikes on Iran on the Polymarket prediction market has already reached 100% and will be settled accordingly.

GateNews3h ago

OpenAI fires employee suspected of insider trading on Polymarket! Unusual Whales flagged 77 suspicious transactions

OpenAI has dismissed an employee for using non-public information obtained through work to engage in insider trading on prediction market platforms, violating the company's compliance policies. An on-chain analysis platform has reported that 77 suspicious transactions have been flagged, involving internal OpenAI information. The issue of insider trading in prediction markets continues to attract attention, and the misuse of internal information within the tech industry has become a new challenge.

動區BlockTempo5h ago

Predicting market insider trading scandal exposure, OpenAI takes the lead in dismissing involved employees

OpenAI has dismissed an employee for allegedly using insider information to conduct insider trading in prediction markets, violating company compliance policies. This is the first time a large tech company has fired an employee over insider trading, sparking concerns about regulation of prediction markets. On-chain data shows multiple suspicious transactions beyond that employee, which may indicate a broader insider information leak issue.

MarketWhisper8h ago

OpenAI fires employee involved in prediction market "insider trading"

PANews February 28 News, according to WIRED, OpenAI recently laid off an employee for trading on prediction market platforms such as Polymarket and Kalshi based on internal information. The report states that the employee used non-public information obtained through their work at OpenAI to bet on related contracts, allegedly constituting "insider trading" and violating company compliance policies.

GateNews9h ago

Why Is Bitcoin Below $66,000 Despite Massive Whale Purchases? - BTC Hunts

Bitcoin is struggling to regain the $70,000 level despite significant institutional purchases, including a large buy from Block Inc. Various factors, such as US geopolitical tensions and inflation, contribute to ongoing price declines. Analysts predict a potential dip below $65,000.

BTCHUNTS11h ago
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)