“parimutuel pools solve the cold start problem but lock traders in until the event ends”
Traces the parimutuel betting model from its 1867 origins in French horse racing to modern prediction markets. Argues that parimutuel pools solve the cold start problem by bootstrapping liquidity without market makers, but identifies three friction points that need upgrading: locked positions, timing constraints, and price readability.
No technical background needed
Platforms mentioned: NEW: Melee, Kalshi, Polymarket