Startup P2P.me gambled on its own funding—then lost the bet

A bold gamble backfired when P2P.me wagered on its $6M funding target—then fell short. Now, regulators are pushing for tighter oversight of prediction markets.

, and Administrator

2026 March 28 . 1:01 AM

1 min read

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Startup P2P.me gambled on its own funding—then lost the bet

Peer-to-peer networking startup P2P.me has admitted to betting on its own fundraising success using prediction market platform Polymarket. The controversial move came before the company's official launch, raising questions about transparency and ethics in the sector. The incident has since sparked wider debate over regulation in prediction markets. P2P.me placed bets on whether it would meet its $6 million funding target. At the time, the company had only a verbal commitment of $3 million from investor Multicoin Capital. When the final total reached $5.2 million—short of the goal—the bets lost, and the proceeds went to P2P.me's MetaDAO Treasury.

The revelation quickly drew scrutiny from industry observers. In response, P2P.me announced it would liquidate all remaining positions on Polymarket and introduce a formal policy on prediction market trading. Meanwhile, US regulators, particularly the Commodity Futures Trading Commission (CFTC), have pushed for stricter oversight of prediction markets. The agency has called for faster implementation of investor protections, guardrails, and bans on insider trading. Platforms like Polymarket and Kalshi have already taken steps, launching their own insider trading programmes, excluding high-risk participants, and tightening compliance. As more prediction market platforms emerge, the debate over regulation is expected to intensify.

P2P.me's bets on its own funding round have highlighted gaps in prediction market oversight. The company now faces pressure to enforce stricter internal policies, while regulators and platforms continue to strengthen safeguards. The incident underscores the growing need for clearer rules as the sector expands.