Polymarket-backed platform boosts funding to root out insider trading on prediction markets

A Polymarket-backed platform raised $1.5 million to help finance tools to root out insider trading and other suspicious activity on prediction markets. 

Polysights is an AI-powered platform that gives users and institutions tools to find wallet clustering, detecting anomalies in markets and other strategies used on prediction markets. 

The beta-phase platform raised added capital in a pre-seed SAFE funding round backed by investment firms YZi Labs, Maven11, Varys Capital, Contribution Capital and Edge Ventures. 

"Prediction markets are becoming one of the most important information layers on the internet," said Tre Upshaw, Polysights founder and CEO. "Traders, researchers, and institutions are increasingly looking to prediction markets for real-time signals, yet the infrastructure for interpreting that data has not kept pace. There is a reason why all of the major players across the ecosystems are supporting Polysights —prediction markets need a dedicated intelligence layer, and Polysights is building it."

The platform is supported by Polymarket, Predict.fun and Underdog Fantasy.

Underdog has partnered with Crypto.com to provide sports prediction markets in 16 states.

Kalshi, the dominant prediction market platform with more than $21 billion in notional trading volume as of June 1, didn't participate.  

The funding announcement comes as Bernstein expects that prediction market trading volume will reach $1 trillion by 2030.

Polymarket has come under scrutiny after a recent Wall Street Journal report found that the platform paid social media creators to make videos falsely showing they won large profits on a dummy website that looked to be replicating the platform.