Token Rewards Warp Prediction Markets

When prediction platforms attach crypto token incentives to trading activity, actors can 'activity‑farm' or wash‑trade to inflate volume and earn rewards. That artificially generated activity can produce misleading market signals about elections or events and enable money to move under a veneer of legitimacy. — If token incentives routinely create fake volume, media, policymakers, and researchers can be misled by market 'signals', calling for new rules on token incentives, transparency, and cross‑border market oversight.