P2P.me Team Discloses Polymarket Bets Tied to Funding Round | Crypto Security News
Crypto security news: P2P.me Team Discloses Polymarket Bets Tied to Funding Round. This update explains what happened, why it matters for wallets, exchanges, traders, and users, and what the market should watch next.
Crypto Security Update
The team behind the P2P.me decentralized trading platform disclosed that it opened positions on the Polymarket prediction market related to its recent capital raise.The team opened the positions 10 days before the raise went live, wagering whether the project would hit its $6 million fundraising target, according to a disclosure published on the X social media platform.At the time the positions were opened, P2P.me had only one “oral commitment” from venture firm Multicoin Capital for $3 million in funding, “no signed term sheets” and “no guaranteed allocations,” the team said. The Polymarket account for the P2P.me team shows an all-time profit of over $23,480. Source: PolymarketHowever, the project only managed to raise $5.2 million in the funding round, which resulted in the market resolving to a “no.” Following the outcome, the team said:“Trading on an outcome you can influence erodes trust. We don’t believe we were trading on a done deal, but we recognize reasonable people can see it differently. We named the account “P2P Team” deliberately to give a marketing signal of our presence. But intent isn’t the same as action. Not disclosing at the time was a mistake we own.”Any profits made from the prediction market positions will be funneled back into the project’s MetaDAO treasury, the reserve for the decentralized autonomous organization (DAO) governing the platform, the P2P.me team said.The team also said it is liquidating all open positions on Polymarket and adopting a “formal company policy” on prediction market trading activity.Source: P2P.meCointelegraph reached out to P2P.me about the disclosure, but did not receive a response by the time of publication.Prediction markets have come under increased scrutiny from US lawmakers for insider trading activity, and in response, popular prediction market platforms like Polymarket and Kalshi have announced countermeasures to curb insider trading.Related: Federal regulation looms as 11 states go after prediction marketsUS lawmakers take steps to curb insider trading activity on prediction marketsUS lawmakers are seeking to restrict insider trading activity on prediction markets, particularly those linked to elections, legislation and geopolitical issues with national security implications.Congress members Adrian Smith and Nikki Budzinski introduced the “Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act,” also known as the PREDICT Act, on Wednesday to ban the US president and lawmakers from prediction markets.A competing bill was also introduced on Thursday, aiming to curb political insider trading activity on prediction market platforms.Magazine: IronClaw rivals OpenClaw, Olas launches bots for Polymarket — AI EyeCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Why This Security News Matters
First, this development may affect exchange safety, wallet security, user trust, and broader market sentiment. In addition, it may influence platform security practices, fund recovery efforts, and regulatory pressure. As a result, traders and crypto users should watch the next updates closely.
What To Watch Next
Watch for official statements, post-mortem reports, wallet warnings, exchange responses, and fund recovery updates. In particular, any new details about phishing, exploits, private key exposure, or security patches could directly affect the broader crypto market.
