Speaking at this year’s TOKEN2049 event in Singapore, Polymarket CEO Shayne Coplan dropped a bombshell on crypto investors in the audience: He suggested that they could achieve superior returns by investing in prediction market event contracts rather than in the spot crypto market.

Admittedly, as investment advice, that might sound incredibly misguided. But anyone who has traded crypto over the past few years knows the reality. Coplan is right, and here’s why.

Irrational exuberance and hot potato

According to Coplan, the crypto market has turned into a game of “irrational exuberance” and “hot potato.” Crypto investors rush into the market, eagerly searching for the next big altcoin capable of delivering 100x returns. They pour their…