Polymarket is collaborating with data analysis company Palantir Technologies and AI company TWG AI to create a surveillance system.
The new monitoring will focus specifically on suspicious transactions in sports markets offered through the prediction platform.
The monitoring system will use the data infrastructure offered by Palantir and data analysis capabilities offered by TWG AI to detect any suspicious activity.
The main objective of the partnership is to identify any suspicious activity that may be considered as market manipulation, insider trading, or betting.
Terms of the contract
Under the partnership, the platform will use real-time analysis of trading data to identify unusual trading activity. It will also carry out participant screening and generate reports on the same, which can be used by the authorities and sports leagues if need be. These reports will enable the authorities to easily assess the trading activity and investigate any unusual activity if detected.
Prediction markets enable the trading of real-world events such as elections, economic data, and sports results. As the popularity and trading volume on these markets increase, the need for transparency and the possibility of insider trading, especially in sports, has gained more attention.
Impact on market
The argument that industry supporters are currently presenting is that better monitoring technology must be implemented to ensure the long-term credibility of the prediction markets. Through the implementation of more sophisticated monitoring technology, the industry hopes to convince the regulators of its capability to effectively manage the trading process and ensure fair markets.
The role of Palantir will be to process the trading data, while TWG AI will utilize its machine learning capabilities to identify patterns which could indicate manipulation or unusual trading activity.
The decision, according to Polymarket, has the potential to enhance oversight and could also lead to the development of trust among the users, the regulators, and the sports bodies. As the industry continues to grow, the companies in the industry are investing in monitoring technology to ensure the industry’s capability to manage its growth.