Originally published on: November 04, 2024
As the United States presidential election draws near, major players in the crypto world are placing big bets on Donald Trump’s re-election. A significant portion of the “Yes” votes for Trump on the decentralized prediction market are controlled by a small group of mysterious entities, known as whales.
According to Domer, a pseudonymous political bettor, five whales have acquired over 50% of the Trump shares, potentially setting them up for a massive payday of more than $81 million. On the other hand, Vice President Kamala Harris’ shares are more evenly distributed, with the top five shareholders holding only 18% of her “Yes” votes.
The concentration of Trump shares among a few large investors has caught the attention of the crypto community, with the looming election seen as a pivotal moment that could shape the regulatory landscape for the industry. With Trump currently leading the polls on decentralized betting market Polymarket, investors are closely monitoring the situation.
The dominance of Trump in the betting markets is in stark contrast to traditional polling systems, where Harris is shown to have a slight edge. This disconnect has led to speculation and volatility in the markets, with Bitcoin experiencing a correction due to the uncertainty surrounding the outcome of the election.
Some analysts have dubbed Bitcoin’s recent price surge as a “Trump pump,” attributing the rally to the increasing odds of a Trump victory. However, others believe that the rally is merely a “Trump hedge” and lacks the necessary macroeconomic conditions to sustain an all-time high post-election.
As the US election approaches, all eyes are on the crypto whales and their multimillion-dollar bets on Trump’s victory, a high-stakes gamble that could have far-reaching implications for the industry.
