P2P.me Faces Insider Trading Claims After Own Raise Bet

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The P2P.me team disclosed the bets on March 27, 2026, through an official post on X. According to the statement, an on-chain account labeled “P2P Team” used foundation treasury funds to wager on the raise. The team bet that their project would hit its $6M+ fundraising target. In the end, the raise closed at $5.2M. As a result, the Polymarket position resolved as “No.”

What P2P.me’s Team Actually Did

About 10 days before the raise went live, the team placed bets that their fundraise would exceed $6M. At that point, they had only one oral commitment from Multicoin Capital for $3M. No signed term sheets or binding agreements existed.

On-chain data showed roughly $149K in total trading volume across the positions, according to AMBCrypto. The bets generated around $23K in profit and loss. Some individual positions gained over $11K before resolution. All capital came from the project’s foundation treasury.

The raise window ran from roughly March 26 to March 30, 2026. It closed at $5.2M from outside investors. That fell short of the $6M threshold the team had targeted.

The Team’s Full Disclosure

In their X post, the P2P.me team framed the bets as “backing our word with our own money.” They said the outcome was “genuinely uncertain” when they placed the wagers.

The team acknowledged the optics directly. “We understand why this raises questions,” the post read. “Trading on an outcome you can influence erodes trust.” They also admitted that not disclosing the bets earlier was “a mistake we own.”

According to the statement, the team named the Polymarket account “P2P Team” on purpose. They said the intent was to signal their presence to the community.

In addition, the team confirmed that all proceeds will return to the MetaDAO futarchy-governed treasury. They also said they are liquidating all open Polymarket positions. On top of that, they are drafting a formal company policy on prediction market trading.

Why Timing Made the P2P.me Insider Trading Debate Worse

The disclosure landed just four days after Polymarket updated its market integrity rules. On March 23, 2026, Polymarket explicitly banned insider trading on its platform. The ban covers trades by people who can influence an outcome or hold non-public information about it.

The P2P.me team’s bets likely predated the rule change. Still, both the raise and the disclosure came after the new rules took effect. That timing drew additional scrutiny from the community.

Meanwhile, US lawmakers continue debating the PREDICT Act. This bill targets insider trading on prediction markets. It has gained momentum as platforms like Polymarket attract mainstream attention. As a result, any high-profile incident adds fuel to the regulatory argument.

Community Reactions Split on P2P.me Insider Trading Accusations

Critics called the bets a clear case of P2P.me insider trading. They argued that any team with non-public knowledge of fundraising progress should not trade on that outcome. Some community members called for the raise to be canceled entirely.

On-chain sleuths spotted the wallet activity quickly. Tools like Lookonchain made the bets easy to track. Consequently, the controversy spread before the team even posted its disclosure.

Supporters took a different view, however. They argued the team was showing conviction by betting treasury funds on their own success. Some Reddit threads framed the situation as “early belief” rather than manipulation. They also pointed out that the bets ultimately lost money.

For its part, the P2P.me team stressed that MetaDAO had “zero knowledge of or involvement in these bets.” They said they wanted to start their MetaDAO membership on the right note.

Where Conviction Ends and Insider Trading Begins

The core question is straightforward. Does betting on your own fundraise count as insider trading? The P2P.me team argues it does not. They say the outcome was uncertain and the capital came from the treasury.

Critics counter that the team had non-public information. Specifically, they knew about the oral Multicoin commitment. They could also directly influence the outcome through their fundraising efforts. In traditional finance, that combination would likely trigger regulatory action.

Prediction markets exist in a regulatory gray area. Polymarket’s new rules attempt to address this gap. However, enforcement on decentralized platforms remains difficult. So far, no legal action or formal investigation has been announced in this case.

What Comes Next for P2P.me

The team says it will implement a formal policy on prediction market trading. All current Polymarket positions are being liquidated. The fundraise itself closed at $5.2M, and the MetaDAO integration reportedly moves forward.

Whether the voluntary disclosure rebuilds trust will depend on the policy details. It will also depend on how the broader community responds. For prediction markets, this incident adds another test case to the growing debate over market integrity.

This article is for informational purposes only and does not constitute financial advice.