Crypto payments startup **P2P.me** has acknowledged that it bet company funds on a **Polymarket** prediction market tied to its own fundraising outcome, triggering accusations of insider trading and ethical lapses around the use of material non‑public information. The firm revealed that it opened a roughly **$20,500** position on a Polymarket market about whether P2P.me would raise **$6 million** or more, placing the trades about 10 days before the round was publicly announced and after it had already secured an oral **$3 million** commitment from venture firm **Multicoin Capital**. P2P.me later closed the position for about **$35,212**, earning an estimated **$14,700** profit. The company framed the trade as a misguided “vote of confidence” and “guerrilla marketing stunt,” saying it named the Polymarket account **“P2P Team”** to signal its involvement but conceded that failing to disclose the bet at the time was a mistake. Legal commentators noted that the prior $3 million verbal commitment could constitute **material non‑public information**, raising insider trading concerns even though no documents had been signed and the fundraise outcome remained uncertain. The controversy comes amid wider regulatory focus on prediction markets and follows a separate, high‑profile U.S. case where a Google employee was charged over alleged insider trading on Polymarket, heightening scrutiny of how insiders use such platforms. Facing backlash from the crypto community on the eve of its planned token sale, P2P.me said it would **donate the Polymarket profits to the MetaDAO Treasury**, emphasizing that MetaDAO was not informed of the trades in advance. Some investors and industry participants argued the incident reflects poor judgment rather than intentional market abuse, while others see it as a warning case about startups speculating on markets whose outcomes they are directly influencing. The episode underscores unresolved questions about how existing insider‑trading and commodities rules apply when corporate insiders trade on **on‑chain prediction markets** linked to their own projects. "entities":["P2P.me","Polymarket","Multicoin Capital","MetaDAO","P2P Team (Polymarket account)"]}'}}```

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