Prediction markets reflect 'wisdom of an informed minority,’ not crowd: Study
Prediction markets reflect 'wisdom of an informed minority,’ not crowd: Study
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A recent study on prediction platforms indicates that a small fraction of informed traders (approximately 3.5%) secures over 30% of profits, while the majority of users (67%) absorb all losses.
About 3.5% of informed traders, including market makers and skilled takers, capture over 30% of profits on prediction platforms, while about 67% of users absorb the entirety of losses.