Connect with us
DAPA Banner

Crypto World

Founders admit blockchain transparency is the only defense

Published

on

Founders admit blockchain transparency is the only defense

Prediction markets are increasingly being framed not as gambling platforms but as vehicles for monetizing information, though founders acknowledged the line can blur depending on user intent at Consensus Hong Kong 2026.

Ding X, founder of Predict.fun, argued that prediction markets more closely resemble insurance underwriting or poker than roulette. “It’s more information trading and trying to hedge risk, rather than gambling,” he said, distinguishing skill-based forecasting from games where long-term odds guarantee losses.

Farokh Sarmad, co-founder of DASTAN, agreed that speculation exists but described the sector as “a multi-trillion dollar asset class in the making.” In his view, prediction markets are simply “financializing information,” allowing participants to monetize insight rather than leaving value solely with media companies or bookmakers.

Jared Dillinger, CEO of New Prontera Group and a former professional athlete, said the classification depends largely on how platforms are built and used. “It just depends on the eyes of the beholder,” he said, adding that prediction markets function as “an information asset class,” even if some users approach them like bets.

Advertisement

The more pressing challenge is insider trading. High-profile examples—from leaked entertainment setlists to geopolitical developments—have underscored the risk of information asymmetry.

“Insider information is not okay,” Sarmad said, noting that blockchain transparency can make suspicious wallets visible. Still, Dillinger acknowledged enforcement limits. “There’s always going to be some loopholes that people will find.”

As trading volumes rise and regulators take notice, founders agreed that surveillance tools, clearer disclosure norms and stronger platform governance will determine whether prediction markets mature into a recognized financial category—or remain viewed as speculative betting.

Advertisement

Source link

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Stablecoins Dominate Crypto Trading as Retail Activity Drops: CEX.io

Published

on

Stablecoins Dominate Crypto Trading as Retail Activity Drops: CEX.io

Stablecoins were a rare bright spot in an otherwise subdued crypto market in the first quarter, with supply growth and transaction activity pointing to sustained demand even as broader market conditions weakened.

Total stablecoin supply increased by roughly $8 billion to a record $315 billion in Q1, according to data from CEX.IO. Although this marked the slowest pace of expansion since Q4 of 2023, it still represented growth during a period when the wider crypto market contracted.

The data suggests investors rotated into stablecoins as a defensive strategy, boosting their share of overall market activity. Stablecoins accounted for 75% of total crypto trading volume during the quarter — the highest level on record.

Stablecoins’ share of total digital asset trading volume exceeded its 2022 peak. Source: CEX.io

At the same time, total stablecoin transaction volume topped $28 trillion, underscoring their growing role as the primary liquidity layer of the digital asset market. The figure extends a multi-year surge in activity, with stablecoin volumes in recent years exceeding those of major payment networks like Visa and Mastercard combined.

However, data on underlying activity painted a more nuanced picture.

Advertisement

Retail-sized transfers — typically associated with individual users — declined by 16% in the first quarter, the steepest drop on record. In contrast, automated activity surged, with bots accounting for approximately 76% of all stablecoin transaction volume.

The shift toward bot-driven flows suggests that a growing share of stablecoin usage is tied to algorithmic trading, arbitrage and liquidity provisioning, rather than retail demand. While elevated automation can reflect more sophisticated or institutional participation, it may also signal weaker organic demand during bearish market conditions. 

Related: Circle shares surge as Bernstein sees upside from stablecoin adoption

Divergence between major stablecoin issuers

One of the CEX.io report’s key takeaways was a widening divergence between major stablecoin issuers. The supply of Circle’s USDC (USDC) grew by roughly $2 billion in the first quarter, while Tether’s USDt (USDT) declined by about $3 billion, marking the first notable split between the two since Q2 of 2022 amid the bear market.

Advertisement

The trend aligns with earlier Cointelegraph reporting, which highlighted a surge in USDC transfer activity in February, pointing to increased usage across trading and onchain transactions.

USDC is now more widely used for “financial operations,” which include trading and onchain transactions. Source: CEX.io

Beyond USDC, much of the growth in stablecoin issuance was driven by yield-bearing products — a segment that has drawn increasing scrutiny in the US. Ongoing discussions around a crypto market structure bill in Congress have placed yield at the center of debate, with traditional banks pushing back against stablecoins that offer interest-like returns.

The market for yield-bearing stablecoins is currently valued at around $3.7 billion, with daily trading volumes exceeding $100 million, according to data from CoinGecko.

Related: Crypto Biz: Stablecoin jitters meet institutional momentum