- Polymarket’s wildfire prediction markets draw criticism for enabling bets on natural disasters.
- Trading volume reaches $100,000 across multiple California wildfire-related markets.
- Critics raise concerns about potential incentivization of arson for market manipulation.
- Five separate fires have led to 137,000 evacuations and five fatalities in Los Angeles area.
- Similar controversy emerged during 2023 Titan submersible incident prediction markets.
Cryptocurrency prediction platform Polymarket faces public outrage over markets allowing users to bet on outcomes of ongoing California wildfires, which have claimed five lives and forced over 137,000 residents to evacuate their homes.
Controversial Market Mechanics
The platform currently hosts at least 10 different prediction markets related to the Los Angeles wildfires, with some individual markets accumulating nearly $100,000 in trading volume. These markets enable users to speculate on various outcomes, including containment timelines and potential political consequences.
Public Response and Safety Concerns
Critics on social media have condemned the practice as exploitative. One user on X (formerly Twitter) characterized the betting as “_unarguably uncouth beyond measure._” More serious concerns emerged when analysts pointed out potential risks of individuals deliberately starting fires to influence market outcomes.
A market analyst highlighted the misleading nature of the odds, stating: “_No, there is no ‘48% chance it will spread’, there are 48% of people betting on that to happen._”
Historical Pattern of Controversy
This incident mirrors previous criticism of Polymarket during the Titan submersible tragedy in 2023, when the platform allowed betting on the fate of five passengers aboard the vessel.
In response to criticism, Polymarket defended its position by describing its markets as providing “accurate, unbiased forecasts” through crowd wisdom. The platform claimed its predictions offer “invaluable real-time answers” superior to traditional media coverage.
Emergency management experts recommend relying on official emergency services and established news organizations for critical safety information during natural disasters, rather than prediction markets.
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