The team behind the P2P.me decentralized trading platform has publicly disclosed that it opened positions on the Polymarket prediction market tied to its own capital raise. The positions were opened 10 days before the fundraising round went live, according to a statement published on the X social media platform. The wager centered on whether the project would reach its $6 million fundraising target.
At the time the positions were placed, P2P.me held only a single oral commitment from venture firm Multicoin Capital for $3 million in funding. The team acknowledged there were no signed term sheets and no guaranteed allocations secured at that point. Despite this, the team proceeded to take positions on the outcome of its own raise.
The fundraising round ultimately fell short of its goal, bringing in $5.2 million rather than the targeted $6 million. As a result, the prediction market resolved to a “no” outcome. The team did not detail the exact size of the positions or the financial impact of the resolution in its disclosure.
P2P.me stated that any profits generated from the prediction market positions will be directed into the project’s MetaDAO treasury, which serves as the reserve fund for the decentralized autonomous organization governing the platform. The team also announced it is liquidating all remaining open positions on Polymarket. Additionally, the project said it is adopting a formal company policy governing prediction market trading activity going forward.
Cointelegraph contacted P2P.me for comment on the disclosure but had not received a response by the time of publication. The incident arrives as prediction markets face growing scrutiny from US lawmakers over concerns about insider trading activity. In response to that pressure, platforms including Polymarket and Kalshi have announced measures aimed at curbing such behavior.
Legislative efforts are also underway in the United States to restrict insider trading on prediction markets, particularly those connected to elections, legislation, and geopolitical matters with national security implications. Congress members Adrian Smith and Nikki Budzinski introduced the Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act, known as the PREDICT Act, to prohibit the US president and lawmakers from participating in prediction markets. A separate competing bill was introduced the following day with a similar aim of limiting political insider trading on these platforms.
Originally reported by CoinTelegraph.
