[ndsipa_pomu]

If the prediction markets are supposed to have insider trading, then they should be made illegal.

[crazygringo]

Insider trading isn't inherently bad. Any wager between two people is always going to contain some informational asymmetry.

There are good reasons why insider trading illegal for publicly traded stocks.

But those reasons don't translate to prediction markets.

[ndsipa_pomu]

Why don't those reasons translate to prediction markets?

As I see it, insider trading leads to insiders making decisions purely to game the (prediction) markets which means that markets become more erratic and will surely lead to less money being available for companies to grow as investors realise that they are being robbed.