Crypto Startup Uses Polymarket to Bet on Its Own Fundraise, Blindsiding Backers
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In brief Stablecoin startup P2P.me went viral on X after apologizing for placing Polymarket wagers on its own fundraising efforts. P2P.me’s biggest backers were unaware of the company’s recent wagers, two people familiar with the matter told Decrypt. The wagers were placed around the time that Polymarket updated its rules to prohibit insider trading, including by those who can influence markets’ outcomes. P2P.me was established to push boundaries with stablecoins, but the startup has determined that wagering on itself via Polymarket may have been a bridge too far. On Saturday, the firm backed by Coinbase Ventures and Multicoin Capital apologized for speculating on its latest fundraising round using the prediction market, describing the move in a post on X as an inappropriate attempt at conveying conviction to the public. In total, the company that bills itself as a non-custodial service for converting between stablecoins and cash signaled that it notched less than $15,000 in profits on the prediction market move. Still, it recognized how a small payday could carry outsized consequences. “It created confusion and hurt trust,” P2P.me said. “We should have let the work, the product, and the mission speak for themselves. That was our mistake.” We took our prediction markets position because we believed strongly in what we are building, and we wanted to show that conviction in public, with our own name attached. In an environment where many teams ask others to believe before they are willing to back themselves, we… — P2P.me (TGE arc) (@P2Pdotme) March 28, 2026 As prediction markets have exploded in popularity, so too have concerns that the platforms can be abused by insiders who have access to confidential information. Recent enforcement actions and arrests have focused on the behavior of individuals, but P2P.me’s mea culpa signals that questionable choices can also arise…
Filed under: News - @ March 31, 2026 9:20 pm