Polysights raises $1.5M pre-seed to root out insider trading on prediction markets
What's the deal? Polysights, an AI-powered platform that detects suspicious activity on prediction markets, has raised $1.5 million.
The pre-seed round was backed by YZi LabsDealroom has a profile for this one. Try Dealroom →, Maven11Dealroom has a profile for this one. Try Dealroom →, Varys CapitalDealroom has a profile for this one. Try Dealroom →, Contribution CapitalDealroom has a profile for this one. Try Dealroom →, and Edge VenturesDealroom has a profile for this one. Try Dealroom →.
The beta-phase platform gives users and institutions tools to spot wallet clustering and detect market anomalies. It is supported by Polymarket, Predict.funDealroom has a profile for this one. Try Dealroom →, and Underdog Fantasy.
Why now? Prediction markets are booming, with Bernstein expecting trading volume to reach $1 trillion by 2030.
"Prediction markets are becoming one of the most important information layers on the internet," said Tre Upshaw, founder and chief executive officer of Polysights.
"Traders, researchers, and institutions are increasingly looking to prediction markets for real-time signals, yet the infrastructure for interpreting that data has not kept pace."
What could go wrong? The sector is facing scrutiny over trust and transparency.
A recent Wall Street Journal report found Polymarket paid social media creators to make videos falsely showing big profits on a dummy site mimicking the platform.
Kalshi, the dominant platform with more than $21 billion in notional trading volume as of June 1, didn't join the round.
The signal: As prediction markets grow into a mainstream information layer, the tools to police them are racing to catch up.
Polysights is betting that a dedicated intelligence layer—one major players are already backing—will become essential infrastructure as the market scales.
Read more: CNBC
Image credit: Generated with Gemini
