Crypto startup P2P.me placed wagers on its own fundraising efforts via Polymarket, causing surprise and concern among its major investors. The company apologized for the move, which aimed to show confidence but instead hurt trust and compliance.
The firm, backed by Coinbase Ventures and Multicoin Capital, profited around $15,000. However, the strategy created confusion among stakeholders and was against recently updated rules prohibiting insider trading.
MetaDAO, the fundraising platform used, indicated it would support refunds totaling $20,000 for investors seeking them out of the $6.7 million committed.
P2P.me acknowledged the error, emphasizing future policies to avoid such issues and maintain transparency.