Why Prediction Markets Aren't as New as You Think

Jeff Park on why prediction markets are really binary options from TradFi Prediction market event contracts are binaries, options that pay out 1 or 0 based on whether something happens. And binary options have existed in traditional finance for decades. Jeff started at Morgan Stanley pricing exactly this kind of discontinuous, jumpy risk, built by tightening levered call spreads until they become a binary. His point is that these underpinnings were solved in TradFi long ago, so the real opportunity is for people who can bridge both worlds. #PredictionMarkets #Crypto #TradFi #Options #Trading