Stablecoin startup P2P.me apologised after placing bets on its own fundraising outcome via Polymarket, triggering backlash from investors and the wider crypto community.
The wagers were made before its public fundraising campaign and around the time Polymarket updated rules banning insider trading by participants able to influence outcomes.
P2P.me admitted the move was misguided, stating;
“It created confusion and hurt trust,”
And acknowledging it should have relied on its product and mission instead.
The company generated less than $15,000 in profits from the trades, but said the reputational damage outweighed any financial gain.
Some of P2P.me’s largest backers, including those linked to Coinbase Ventures and Multicoin Capital, were reportedly unaware of the activity, raising governance concerns.
The bets were tied to fundraising milestones on MetaDAO, with some positions linked to a $6 million target, while others referenced a potential $140 million raise.
MetaDAO said it would have discouraged the behaviour and is offering refunds to investors, with about $20,000 requested from the $6.7 million committed so far.
The incident highlights growing scrutiny of prediction markets as regulators and platforms move to curb insider activity and protect investor confidence.