'Danger Case': Ethereum's Buterin Argues Prediction Markets Can Be Manipulated
Analysis
Price Impact
LowVitalik buterin's comments address the potential manipulation and 'danger cases' within prediction markets, which is a specific application within the broader crypto ecosystem. while significant for the integrity of decentralized systems, it does not directly impact ethereum's immediate price action or core network functionality.
Trustworthiness
HighVitalik buterin is the co-founder of ethereum and a highly respected thought leader in the blockchain and cryptocurrency space. his insights are considered authoritative.
Price Direction
NeutralButerin's critique is a cautionary note regarding the ethical and structural challenges of prediction markets. it's not a direct bearish or bullish signal for eth, but rather a warning about potential systemic vulnerabilities in a specific type of dapp.
Time Effect
LongThe issues raised by buterin, such as whale monopolies and incentivizing harmful outcomes, are fundamental design and governance challenges for prediction markets that could affect their long-term viability and public perception. these are not short-term market movers for eth.
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Article Content:
Cover image via U.Today Read U.TODAY on Google News In a recent social media post, Ethereum co-founder Vitalik Buterin poured cold water on the idea of romanticizing "hyperstition," which is the concept of a prediction market actually forcing reality to happen. Advertisement This comes after Charlotte Fang stated that prediction markets with sufficient liquidity could end up programming reality. Buterin, however, would view this as a highly negative outcome, viewing this as a failure mode. HOT Stories Morning Crypto Report: Legendary Trader Speaks out on $24,111 Bitcoin Anomaly on Binance, Cardano's Hoskinson Calls out New Project and Brings up XRP, Dogecoin (DOGE) Posts 'Naughty List' CZ Reacts to Trust Wallet Hack. Are Funds SAFU? Crypto Market Prediction: Is Shiba Inu (SHIB) Saved? XRP Can Enter New Year With Bull Run, Bitcoin (BTC): There's a Problem Biggest-Ever Bitcoin Options Expiry to Take Place Tomorrow "One of the danger cases" When people with huge amounts of money bet on a certain event happening, the odds shoot up close to 99%. Advertisement Since the market is stating that something is likely, the real world could create the event that could match the market. You Might Also Like Thu, 12/25/2025 - 00:01 Crypto Market Prediction: Will Ethereum's (ETH) Christmas Be Bullish? Bitcoin (BTC) Hides Its Real Power, Did XRP Just End 160-Day Bloodbath? By Arman Shirinyan For instance, if there is a market about a certain company failing, investors might pul funding or so on. Hence, the market is causing the future. Advertisement The Ethereum co-founder claims that this actually could be one of the danger cases. If prediction markets gain the ability to manufacture the truth, they will lose their fairness. The Canadian prodigy has specifically singled out two issues with such markets. First of all, there is a danger of a whale monopoly being established, which will lead to a hyperstition being created exclusively by large actors. Hence, the reality could be engineered by whales. There is also the so-called "hitman" problem, meaning that a prediction market could actually incentivize people to cause harm. Bad actors could potentially make bad outcomes materialize after making massive bets. #Ethereum News