The prediction market Polymarket is being criticized for reportedly engaging in wash trading, a form of market manipulation illegal in traditional finance, where the same individual operates as both buyer and seller on a trade. This information was shared by Fortune, which consulted analyses from blockchain forensic companies.

According to the article from Fortune, blockchain analytics firm Chaos Labs suggested that approximately a third of the trading volume on Polymarket's presidential market was potentially the result of wash trading, while another firm, Inca Digital, indicated that a notable part of the market’s activity could stem from such practices.

The article continues that allegations of wash trading on Polymarket arose after suspicions of different manipulation types were reported recently. The potential motivations for these trades might be linked to upcoming token distributions.

In reactions observed on social media, prominent crypto investor Nic Carter hypothesized that the intent behind the alleged activity leans more towards airdrop farming than political maneuvering.

Trader Flip Pidot remarked on the volume tracking in prediction markets, emphasizing the standard practice of quoting trades based on notional values rather than actual amounts paid.

This discussion is becoming increasingly significant as the election season intensifies and regulatory scrutiny grows.