Prediction markets are increasingly being positioned as financial tools that monetize information rather than simple gambling platforms, according to industry leaders speaking at Consensus Hong Kong 2026. As trading volumes grow and regulatory scrutiny intensifies, founders argue that these blockchain-based platforms function more like information exchanges than betting venues.
Ding X, founder of Predict.fun, explained that prediction markets resemble insurance underwriting or even poker more than roulette. Unlike games of pure chance where the house maintains a long-term advantage, prediction markets reward research, analysis and risk management. Participants trade on outcomes tied to real-world events, aiming to hedge risk or profit from superior forecasting. This skill-based structure, he said, distinguishes information trading from traditional gambling.
Farokh Sarmad, co-founder of DASTAN, acknowledged that speculation plays a role but described prediction markets as “financializing information.” In his view, the sector represents a potential multi-trillion-dollar asset class where users can directly monetize insights that would otherwise benefit media companies, bookmakers or centralized institutions. By leveraging blockchain technology, these platforms transform knowledge into tradable digital assets.
Jared Dillinger, CEO of New Prontera Group, noted that classification often depends on platform design and user intent. While some participants may treat prediction markets like bets, he emphasized their broader role as an emerging information asset class within decentralized finance.
However, insider trading remains a major concern. Cases involving leaked entertainment details and geopolitical events highlight the risks of information asymmetry. While blockchain transparency can help identify suspicious wallet activity, enforcement challenges persist. Industry leaders agree that improved surveillance tools, stronger governance frameworks and clearer disclosure standards will be critical.
As regulators evaluate crypto-based prediction markets, the industry’s future may hinge on whether it is recognized as a legitimate financial innovation or continues to be viewed as speculative betting.
