Changan's article thoroughly dissects the profit model of prediction markets, worth a close read.

> Original Title: "Are Prediction Markets a Money Tree? An In-Depth Breakdown of Their Profit Model"
> Original Authors: Changan, Amelia, Biteye




In the past, when discussing prediction markets, people were more concerned about their accuracy, trading volume, and whether they could become a new information market. But when prediction markets are viewed as a business, the core question changes: What is the profit model of prediction markets?





In the business world, high trading volume does not necessarily mean the platform is making money. A market can have a huge volume of trades, and users can buy and sell frequently, but if most transactions do not fall within the fee scope, or if active user engagement is purely maintained through subsidies and points, then the trading volume is just eye-catching data, not healthy revenue.





For prediction markets, the true test of business strength is not "how many markets are opened," nor is it "whether a certain event has"