Crypto Prediction Markets Lure Traders With AI And Arbitrage

Blockchain-based prediction markets are drawing in more speculators as traders look for returns that surpass simply holding spot cryptocurrencies, according to a new report.

Prediction markets are emerging as a new speculative arena for traders, pitting casual retail participants against data-driven, professional traders, creating “extreme information asymmetry and meaningful arbitrage windows,” according to a Monday report from crypto research company 10X Research.

While sports bets account for the lion’s share of activity on these platforms,…