TLDR Tech / Crypto
Most Prediction Market Users Lose Money to HFT
Prediction markets, despite being marketed as accessible income opportunities, funnel the majority of profits to high-frequency traders and sophisticated market makers at the expense of retail participants. The sector generated roughly $51B in volume in 2025 and is tracking toward $240B in 2026, but the skewed profit distribution mirrors dynamics seen in traditional equity markets where HFT firms capture outsized returns from retail order flow.
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