🚨 Polymarket is now betting on major bank failures/destabilizations — and the “FDIC” isn’t happy!
According to Bloomberg on September 26, the prediction markets platform Polymarket has contracts related to the extent to which giants like JPMorgan, Wells Fargo, and Bank of America will fail.
The FDIC and Congress are concerned: if enough traders assess that a sufficient number of failures will occur, those odds could spread on social media, frighten depositors, and effectively create the “bank run” that traders are betting on. 😱
The current trading volume is small ($76,000), but the feedback loop is the real danger.
Even Kalshi called it “bad taste,” and former FDIC chair Sheila Bair warned about the existence of dangerous incentives.
Has the prediction market gone too far? Should bank failures be bet on?
Please follow up
#Polymarket #FDIC #Banking $AAPLB $BTC #CryptoNews #polymarketbankfailurebetsdrawfdicconcern
According to Bloomberg on September 26, the prediction markets platform Polymarket has contracts related to the extent to which giants like JPMorgan, Wells Fargo, and Bank of America will fail.
The FDIC and Congress are concerned: if enough traders assess that a sufficient number of failures will occur, those odds could spread on social media, frighten depositors, and effectively create the “bank run” that traders are betting on. 😱
The current trading volume is small ($76,000), but the feedback loop is the real danger.
Even Kalshi called it “bad taste,” and former FDIC chair Sheila Bair warned about the existence of dangerous incentives.
Has the prediction market gone too far? Should bank failures be bet on?
Please follow up
#Polymarket #FDIC #Banking $AAPLB $BTC #CryptoNews #polymarketbankfailurebetsdrawfdicconcern
