Khokhar31

Recently, the famous analyst on X, Tulip King, shared an interesting observation about the future of financial markets. He believes we are witnessing a comprehensive restructuring of the markets, particularly the rise of prediction markets. According to Tulip King, if you do not pay attention to this trend, you may miss the biggest opportunity in trading since options went electronic.
The iPhone revolution
Tulip King emphasizes that every technological revolution has a special phase where old thinking models cannot recognize the change. He gives the example of the emergence of the iPhone in 2007.
In 2007, Nokia executives looked at the iPhone and said "it has no keyboard." They compared it to phones, while they should have compared it to computers. The iPhone does not compete with existing phones - it is replacing the entire concept of single-purpose devices.
This is precisely what is happening with prediction markets right now. People look at Polymarket and see it as a strange betting website with thin liquidity. They compare it to DraftKings in sports or CME in derivatives and find it lacking. According to Tulip King, they are making the same mistake as Nokia. Polymarket is not a better betting site; it is replacing the entire concept of specialized financial markets. Think about what every financial instrument truly is when you strip away the complexity:
Options: Betting YES or NO on the price
Insurance: Betting YES or NO on a disaster occurring
Credit default swaps: Betting YES or NO on bankruptcy
Sports betting: Betting YES or NO on sports outcomes
We have built trillion-dollar industries around these fundamental questions, each with its own infrastructure, regulations, and exclusive intermediaries that take fees.
Looking at all these markets
Polymarket condenses all of this into a basic unit: creating a market for any observable event, allowing people to trade, and resolving it when reality determines the outcome. It is not better at sports betting than DraftKings or in derivatives than CME. It is doing something more fundamental - reducing all markets to their atomic units and rebuilding from there. Polymarket is the iPhone, everything else is just an app.
Trading in multiple dimensions
When everything trades on the same platform, you unlock possibilities that previously did not exist. Imagine you had to build a position five years ago reflecting this viewpoint: "I think the Fed will raise interest rates, but tech stocks will still rise because Trump will tweet something positive about AI." You would need accounts at different institutions, navigate different regulatory frameworks, different forms of leverage. Trump's part in this trade doesn't even have a market.
On Polymarket, this is just three clicks. More importantly, these are not three separate bets - this is a unified worldview expressed through interconnected positions. You can buy YES on "Fed stops raising interest rates," NO on "Nasdaq hits all-time high," and YES on "Trump mentions AI in next speech." The relationships between them are what trading is about.
Tulip King provides a practical example for those who do not understand. Last month on Polymarket, you could build a position like this: buy YES "Hyperliquid airdrop on December 31" at 67 cents while simultaneously buying NO "Hyperliquid dropping to $20 before 2026" at 13 cents. Think about the outcome matrix here:
You win the most: Hyperliquid does not airdrop and still drops to $20 this year. Given the current market conditions, this is a reasonable viewpoint and should be valued higher than the current price of 8%. You are buying this outcome when it is cheap.
You win a little: Hyperliquid airdrops and the price drops to $20 OR the price drops to $20 without an airdrop. These cases represent the most likely outcomes with a probability of 63%.
You lose everything: Hyperliquid airdrops AND the price stays above $20. With the current market very concerned about new supply from token unlocks, it seems that an airdrop increasing supply will be viewed negatively. The probability of this outcome occurring should be valued below 29%, so you are selling this outcome when it is expensive.
These outcomes create a matrix of scenarios, helping you express complex market views without having to cut down or force them into crude trades as in traditional options or derivatives markets.
Why experts are wrong (once again)
One of the biggest criticisms that Tulip King sees against prediction markets is the liquidity issue. Many argue that these markets lack liquidity, have wide spreads, and are just a space for amateur "gamers." However, Tulip King believes this is a significant opportunity.
He explains that prediction markets will solve this liquidity issue thanks to the emergence of specialized market makers. Instead of a few large companies dominating all the markets, there will be a strong fragmentation, with expert groups in each field such as sports, politics, and events.
Forecast for the future: Polymarket will be the main exchange
Ultimately, Tulip King predicts that within the next 10 years, Polymarket's model will dominate a large portion of traditional financial markets. Prediction markets, by consolidating all financial markets into a basic unit, will have a significant advantage over current specialized markets. In particular, Tulip King believes that markets like DraftKings, CME, and insurance markets will face strong competition from prediction platforms, and will ultimately have to accept this replacement.
According to Tulip King, prediction markets are not just a tool for predicting events, but also a system that creates financial incentives to encourage accuracy and minimize mistakes. This is the major change that traditional financial markets will face in the near future. Those who recognize and prepare for this change early will seize the greatest opportunities in markets since options went electronic.
With these dramatic changes, investing in prediction markets is not just about financial trading - it is also about participating in a revolution of global information and financial systems.
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