|Products||Online Prediction Market|
Intrade was an online prediction market that allowed customers to bet on world political, entertainment and financial events. The company, which was based in Ireland, announced in March of 2013 that it was shutting down its operations after it discovered "potential financial irregularities," according to its web site.
Intrade closed all its U.S. accounts in November of 2012 after the Commodities Futures Trading Commission filed a civil complaint accusing the company of offering its contracts outside traditional exchanges and without regulatory approval. It was part online gambling site and part unregulated futures market, both of which are illegal in the United States.
One of its two founders, John Delaney, died in 2011 on an expedition to reach the summit of Mount Everest. After Intrade was shuttered, co-founder Ron Bernstein started a new site called Tradesports.com, a fantasy sports venue that allows users to buy and sell positions based on predictions for specific sporting events.
Intrade became widely popular during the 2012 presidential race, as users wagered on the outcomes of the primaries and congressional elections, but its business model was criticized by regulators and government officials because of the American prohibition against gambling on elections. Some people warned that such prediction markets are subject to market manipulation when orders are executed at times when liquidity is particularly scarce. The concern is that such orders at times cause markets to shift sharply, often against the broader narrative of the environment.
- Intrade on YouTube: http://tinyurl.com/intrade-ut
- Intrade on GetSatisfaction: http://getsatisfaction.com/intrade
Products and Services
Intrade is a prediction market - a market that allows customers to make predictions on the outcome of hundreds of real-world events. Stock exchanges find the price of stocks, and futures markets find the price of commodities. Prediction markets find the probability of something happening - a predefined, uncertain future event.
- Online Betting Site Intrade Halts Operations. The New York Times.
- RIP Intrade: The last, best hope for pundit accountability. The Washington Post.
- Fantasy Sports Meets Wall Street: Intrade Co-Founder Resurfaces. The Wall Street Journal.
- Intrade Co-Founder Opens Fantasy Sports Site. New York Times Dealbook.
- Market Manipulation Muddies Election Outlook. WSJ.com.
- HOW DOES INTRADE WORK?. Intrade.
- John Delaney, Founder of Intrade, Dies at 42. The New York Times.