The prediction market <\/strong>bull run<\/strong>,<\/a> fueled by giants like Polymarket<\/a>, has attracted a massive wave of new users. Hoping to ride a new narrative breakout, many crypto investors rushed in. However, the report from investment bank Citizens JMP<\/strong> is clear: the median losses for retail investors are significantly deeper here than with traditional bookmakers. To understand this phenomenon, one must grasp the mechanics of prediction markets and what sets them apart from classic betting.<\/p>\n\n\n\n On these peer-to-peer<\/strong> platforms, users do not bet against a house, but directly against other traders. Retail finds itself in direct confrontation with ruthless market makers<\/strong> and highly capitalized quantitative funds. The on-chain data is damning: 70% of the 1.7 million active addresses have incurred losses, while less than 0.04% of addresses have captured over 70% of the total profits. These institutional players are turning novices into mere exit liquidity<\/strong>.<\/p>\n\n\n\n While traditional sports betting often limits professionals, decentralized prediction markets<\/a> offer a completely open order book<\/strong>. Smart money<\/strong> sweeps the board while retail portfolios sink into a bearish trend. The mechanics of a crypto<\/a> pump and dump find their perfect equivalent here in the prediction universe.<\/p>\n\n\n\n