Prediction markets vs. insider trading: Founders admit blockchain transparency is the only defense

In a recent discussion about the integrity of financial markets, founders of various startups emphasized the critical role of blockchain technology in ensuring transparency, asserting that this transparency serves as the sole effective defense against the potential pitfalls of prediction markets and insider trading. They argued that while prediction markets, which allow individuals to place bets on the outcomes of future events, can create opportunities for profit, they also raise ethical concerns and risks of manipulation. At the same time, insider trading, the act of buying or selling stocks based on non-public information, poses a significant threat to market fairness and integrity. The founders contended that by leveraging the immutable and transparent nature of blockchain, they can provide a layer of accountability that safeguards both prediction markets and the broader financial ecosystem, ultimately fostering trust and encouraging participation among investors. This acknowledgment highlights a pivotal moment in the evolution of financial practices, where technological innovation is being leveraged as a solution to age-old challenges in the industry. source: https://www.coindesk.com/business/2026/02/13/prediction-markets-vs-insider-trading-founders-admit-blockchain-transparency-is-the-only-defense