Polymarket CEO: Chasing hundredfold tokens is a game of "irrational exuberance."

Polymarket's CEO Shayne Coplan stated during a fireside chat at the Token2049 conference in Singapore that cryptocurrency trading is evolving into a game of "irrational exuberance," where traders compete to be the first to find the next hundredfold token. He pointed out that people think they are buying something valuable, but in reality, it is worthless; however, as long as there is a possibility of it rising to 100 times, they want to sell before it goes to zero. Coplan mentioned that some traders can gain considerable wealth through this strategy, but it is essentially a game of "irrational exuberance and hot potato," where rising asset prices will eventually fall back.

Coplan indicated that the continuous growth of Polymarket's user base shows that some traders are looking for betting opportunities with more predictable odds, rather than the next skyrocketing cryptocurrency. He explained that trading these markets on Polymarket does not have exponential upside potential, but informed traders will continue to place bets on future events with more predictable odds. According to data from DefiLlama, Polymarket is the second-largest prediction market, with a trading volume of $1.21 billion in the past seven days, while the largest market, Kalshi, had $2.3 billion.

The growth of prediction markets has also attracted more attention from U.S. regulators. It was reported that JPMorgan terminated its banking relationship with Polymarket on August 14 due to regulatory concerns but expressed interest in acting as an underwriter if Polymarket seeks to go public.