NFT Derivatives: Prediction Markets on NFT Indexes
Prediction markets certainly aren’t a new thing but they could lead to a new market especially when combined with NFTs.
The concept behind prediction markets has been around for centuries. But, decentralized prediction markets are a rising phenomenon that may change the game as we know it.
Simply put, prediction markets are platforms where participants place bets on outcomes of future events. So, the market prices you’ll see on these platforms are a reflection of what a crowd believes is going to happen. When a bet is correct, the users receive a prize. But, when the bet does not go the predicted way, users lose the money they put in. Or you can think of it as paying a premium fee to place a prediction.