From gambling to financial instruments, Goldman Sachs is "de-labeling" prediction markets

For a long time, prediction markets have been labeled as "gambling" and "speculation," making it difficult for them to enter mainstream financial perspectives. Goldman Sachs's focus itself is a move toward de-labeling this sector. The core of prediction markets is not about betting on wins or losses, but about aggregating information through prices, which is essentially no different from futures and options.

The difference lies in the fact that prediction markets focus on "event outcomes" rather than asset prices. This gives them unique advantages in fields such as politics, technological breakthroughs, and policy implementation. Goldman Sachs's research indicates that institutions are beginning to view prediction markets as an alternative data source rather than a fringe activity.

Once prediction markets are incorporated into institutional analysis systems, their liquidity, compliance, and influence could undergo a qualitative change. For Web3, this is an important step from "self-congratulatory narratives" to "mainstream understanding."