FM
Felipe Montealegre@TheiaResearch
Curated by Fundamental Labs · posted 618d

Don't overestimate the efficiency of Polymarket

ThesisPrediction Markets

Felipe warns against overestimating Polymarket's efficiency, arguing that a +2% price movement doesn't necessarily reflect a true +2% probability shift. Market moves can result from rumor-driven trading rather than genuine information revelation, making prediction market prices unreliable proxies for actual outcome probabilities.

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