4 weeks ago
Robinhood is broadening its offerings to pull much users by introducing concern contracts linked to the result of the November US Presidential election, according to an Oct. 28 statement.
Event-based derivatives trading allows investors to speculate connected circumstantial occurrences, specified arsenic predetermination outcomes oregon economical argumentation announcements, without purchasing related assets. According to the firm, its contracts volition let radical to prosecute successful real-time decision-making and unlock a caller plus people that democratizes entree to events arsenic they unfold.
Robinhood stated that its election-linked contracts volition beryllium unfastened for trading until Nov. 8, with prices fluctuating betwixt $0.02 and $0.99, driven by marketplace sentiment. As Election Day approaches, the worth of the declaration for the winning campaigner volition rise, paying retired adjacent to $1.
The steadfast continued that each trader’s winning would beryllium paid retired connected Jan. 8, 2025, aft the statesmanlike results are certified by the US Congress connected Jan. 6, 2025.
The merchandise volition beryllium rolled retired to a constricted fig of US-based customers starting today.
Increased contention for Polymarket
Robinhood’s introduction into the predetermination declaration marketplace brings added contention to a abstraction dominated by the decentralized betting marketplace Polymarket. Other platforms, specified arsenic BET connected Solana and Trump Prediction Market Perpetuals connected dYdX, connection election-related event-based options, creating an progressively competitory market.
Meanwhile, Polymarket has lately faced added scrutiny implicit unproven concerns astir marketplace manipulation. Market observers person noted a emergence successful large-scale wagers favoring the Republican candidate, Donald Trump. However, marketplace information is typically hard to provably property to manipulation alternatively than axenic escaped marketplace mechanics.
CEO Shayne Coplan has addressed these allegations, defending Polymarket’s integrity and dismissing concerns astir manipulation, though immoderate marketplace observers stay skeptical. He stated:
“Polymarket is strictly non-partisan. We get told we’re Dem operatives and MAGA, depending connected the day. Unfortunately the communicative is overmuch little juicy, we’re conscionable marketplace nerds who deliberation prediction markets supply the nationalist with a overmuch needed alternate information source.”
As of the latest data, Polymarket’s predetermination result marketplace has seen astir $2.5 cardinal successful volume. Current likelihood suggest a 65% accidental of winning for Trump, portion his hostile Kamala Harris holds a 35% odds.
The station Robinhood challenges Polymarket with election-linked contracts for US statesmanlike race appeared archetypal connected CryptoSlate.
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