Originally published on: November 04, 2024
As the US presidential election draws near, big players in the cryptocurrency world are placing hefty bets on Donald Trump’s success. These mysterious entities, known as whales, are dominating the decentralized prediction market with millions of dollars at stake.
According to a well-known political bettor, Domer, five whales hold over 50% of the shares for Trump’s victory. This concentrated ownership could result in a massive payday of more than $81 million for these investors. In comparison, Vice President Kamala Harris’ shares are spread out more evenly, with the top five shareholders owning only 18% of her “Yes” votes.
With the election day just around the corner, the focus on the outcome is intensifying among crypto investors. The results could significantly impact the regulatory environment for the industry in the coming years.
Interestingly, a group of top Trump bettors, possibly controlled by a single entity, are strongly confident in a Trump win. This sentiment is reflected in the decentralized betting market, Polymarket, where Trump holds a lead with odds standing at 56.9% compared to Harris’ 43%.
While traditional polling systems show a closer race, decentralized prediction markets like Polymarket are gaining attention for their potentially more accurate predictions. Investors, including heavyweight Elon Musk, believe that these markets provide a more reliable indicator of public sentiment.
The fluctuating odds on Polymarket, coupled with Harris’ surge in traditional polls, have caused some investors to take profits. This phenomenon might have contributed to Bitcoin’s recent correction, with some analysts dubbing it a “Trump pump” as the cryptocurrency’s price closely mirrored Trump’s odds of winning.
As the US election unfolds, all eyes are on the crypto world to see how these bold bets play out and what impact they may have on the market. Don’t miss out on the latest developments by subscribing to the Finance Redefined newsletter for expert insights and analysis every Friday.
