Ethereum co-founder Vitalik Buterin made $70,000 on prediction markets last year by betting against “crazy things” on Polymarket, with a 16% return on $440,000 capital. He focuses on markets in “crazy mode,” dabbling in politics and technology. Buterin believes prediction markets can be more accurate than polls when combined with news sources.

Buterin has experience in prediction markets, having made $58,000 betting on the 2020 U.S. presidential election. He sees potential in markets despite vulnerabilities like the incident where hackers manipulated a market on the Russia-Ukraine conflict, leading to $9,300 in profits. Buterin believes current Oracle data sources have low security standards.

Buterin suggests two options to improve prediction markets: centralized models trusting entities like Bloomberg, and decentralized models based on token voting, like the UMA protocol used by Polymarket. He hopes the industry can find better solutions in the future to address vulnerabilities in the system.

Read more at Yahoo Finance: Ethereum Co-Founder Vitalik Buterin Made $70K From Prediction Markets Last Year. His Edge? ‘Crazy Things Won’t Happen’