Polymarket faces backlash over resolving Tiktok ban prediction

Polymarket, a crypto-based prediction platform, is under fire from users following the prediction market’s resolution regarding the Tiktok ban in the US.

“Will TikTok be banned in the US before May 2025?” It was resolved with a “yes” on January 20 after the U.S. Supreme Court upheld a law banning Chinese-owned apps due to national security concerns.

The decision sparked controversy among bettors, with many accusing them of manipulating the outcome.

What’s going on?

The prediction market, with a trading volume of $120 million, focused on whether Tiktok would be banned in the United States before May 2025. On January 19, Tiktok posted a message saying the app would no longer be available. It’s accessible.

The Biden administration justified the ban on the grounds that Tiktok’s parent company, Bytedance, posed an “unacceptable threat to national security” by collecting user data on behalf of “designated foreign adversaries.”

But just a day later, Tiktok announced it would allow access for 75 more days after President Donald Trump’s intervention.

This led to confusion among Polymarket users, who argued that Tiktok was not effectively banned because it operates for most Americans.

relevant: SEC’s ETF Decision Means ETH and ‘Many’ Other Tokens Are Not Securities

community backlash

Polymarket user Sky questioned the platform: “The ban didn’t happen and Tiktok works fine for most Americans. Trump literally gave us an extension. So why 99% yes?”

Another user, SilkRoad69, defended the decision.

“The law banning TikTok was created and went into effect on January 19th. The mayor has said nothing about a temporary extension.”

Another bettor, Spot, expressed “disgust” at the decision and called the platform a “scam”.

A petition demanding accountability for rigging the Tiktok market vote has emerged despite gathering fewer than 100 signatures.

Polymarket’s Dispute Resolution Process

Polymarket relies on UMA’s Bullish Oracle (OO) to solve its prediction markets. OO provides an initial outcome for disputes, which can then be escalated to UMA’s Data Verification Mechanism (DVM).

In this case, the DVM process was bypassed and the market resolved directly with a “yes”, leading to accusations of manipulation.

This isn’t the first time Polymarket has faced criticism.

In May 2024, Polymarket users challenged the resolution of UMA on the Ethereum ETF prediction market.

In June 2024, the market was outraged regarding Barron Trump’s allegations against Memecoin when Polymarket ignored UMA’s resolution and refunded bettors who had refunded bettors on UMA’s verdict.

Polymarket is said to be seeking $50 million in funding to enhance its operations. The platform is said to be planning to introduce a token that will allow users to verify their results.

Cointelegraph reached out to Polymarket for comment but did not receive a response at the time of publication.

magazine: Cryptocurrency trading addiction – what to look for and how it is treated