Robinhood Markets (NASDAQ: HOOD) is betting big on prediction markets – and it seems to be paying off. November marked the firm’s strongest month yet, with over 3 billion contracts traded.According to Vladimir Tenev, chief executive of Robinhood, however, the real breakthrough isn’t the trading activity – it’s how prediction markets are emerging as a powerful information tool.“The much bigger use case is as a source of information, almost as a complement or alternative to the news,” he told CNBC in an interview this week.  Prediction markets turn noise into signalSpeaking with CNBC, Tenev argued prediction markets address a decades-old dilemma: the flood of information that makes it hard to separate fact from speculation.In his words, “Anyone can produce content and share an opinion, but how do you get to the ground truth?”Prediction markets, he added, provide that ground truth by aggregating diverse perspectives into a single, transparent probability.Instead of relying on pundits or polls, investors and the public can look at market prices to gauge the likelihood of outcomes – from elections to policy decisions.By converting scattered opinions into tradable contracts, prediction markets transform raw noise into an actionable signal, offering a sharper lens on reality.Information as a public goodAccording to Vladimir Tenev, the true societal value of prediction markets lies not in trading volume, but in the data they generate.“While hundreds of thousands of people would want to trade what’s happening in the election, the information of who’s likely to win an election is something that affects hundreds of millions,” he explained.The predictive insights extend far beyond the traders. News networks are already integrating market probabilities into their reporting, treating them as a complement to traditional coverage.On “Squawk Box”, the chief executive dubbed it a material shift that positions prediction markets as a public information utility – one that democratizes access to collective intelligence and helps audiences navigate uncertainty.Prediction markets: a market-driven future of truthTenev sees prediction markets evolving much like equities or derivatives, with multiple exchanges competing and brokers like Robinhood Markets connecting customers to the best venues.He stresses that speculation, hedging, and arbitrage must coexist for markets to function properly, but the broader impact is clear: prediction markets are reshaping how society interprets information.By pricing reality, they offer a scalable solution to the “information problem” – the challenge of finding clarity in a world awash with content.If Vladimir Tenev is right, prediction markets won’t just be a niche trading product; they’ll become a cornerstone of how we measure truth in the digital age.Note that Wall Street currently has a consensus “overweight” rating on HOOD shares with a mean target of $155, indicating potential upside of another 13% from here.The post How prediction markets are fixing the ‘information problem’ appeared first on InvezzRobinhood Markets (NASDAQ: HOOD) is betting big on prediction markets – and it seems to be paying off. November marked the firm’s strongest month yet, with over 3 billion contracts traded.According to Vladimir Tenev, chief executive of Robinhood, however, the real breakthrough isn’t the trading activity – it’s how prediction markets are emerging as a powerful information tool.“The much bigger use case is as a source of information, almost as a complement or alternative to the news,” he told CNBC in an interview this week.  Prediction markets turn noise into signalSpeaking with CNBC, Tenev argued prediction markets address a decades-old dilemma: the flood of information that makes it hard to separate fact from speculation.In his words, “Anyone can produce content and share an opinion, but how do you get to the ground truth?”Prediction markets, he added, provide that ground truth by aggregating diverse perspectives into a single, transparent probability.Instead of relying on pundits or polls, investors and the public can look at market prices to gauge the likelihood of outcomes – from elections to policy decisions.By converting scattered opinions into tradable contracts, prediction markets transform raw noise into an actionable signal, offering a sharper lens on reality.Information as a public goodAccording to Vladimir Tenev, the true societal value of prediction markets lies not in trading volume, but in the data they generate.“While hundreds of thousands of people would want to trade what’s happening in the election, the information of who’s likely to win an election is something that affects hundreds of millions,” he explained.The predictive insights extend far beyond the traders. News networks are already integrating market probabilities into their reporting, treating them as a complement to traditional coverage.On “Squawk Box”, the chief executive dubbed it a material shift that positions prediction markets as a public information utility – one that democratizes access to collective intelligence and helps audiences navigate uncertainty.Prediction markets: a market-driven future of truthTenev sees prediction markets evolving much like equities or derivatives, with multiple exchanges competing and brokers like Robinhood Markets connecting customers to the best venues.He stresses that speculation, hedging, and arbitrage must coexist for markets to function properly, but the broader impact is clear: prediction markets are reshaping how society interprets information.By pricing reality, they offer a scalable solution to the “information problem” – the challenge of finding clarity in a world awash with content.If Vladimir Tenev is right, prediction markets won’t just be a niche trading product; they’ll become a cornerstone of how we measure truth in the digital age.Note that Wall Street currently has a consensus “overweight” rating on HOOD shares with a mean target of $155, indicating potential upside of another 13% from here.The post How prediction markets are fixing the ‘information problem’ appeared first on Invezz

How prediction markets are fixing the ‘information problem’

2025/12/06 19:00

Robinhood Markets (NASDAQ: HOOD) is betting big on prediction markets – and it seems to be paying off. November marked the firm’s strongest month yet, with over 3 billion contracts traded.

According to Vladimir Tenev, chief executive of Robinhood, however, the real breakthrough isn’t the trading activity – it’s how prediction markets are emerging as a powerful information tool.

“The much bigger use case is as a source of information, almost as a complement or alternative to the news,” he told CNBC in an interview this week.  

Prediction markets turn noise into signal

Speaking with CNBC, Tenev argued prediction markets address a decades-old dilemma: the flood of information that makes it hard to separate fact from speculation.

In his words, “Anyone can produce content and share an opinion, but how do you get to the ground truth?”

Prediction markets, he added, provide that ground truth by aggregating diverse perspectives into a single, transparent probability.

Instead of relying on pundits or polls, investors and the public can look at market prices to gauge the likelihood of outcomes – from elections to policy decisions.

By converting scattered opinions into tradable contracts, prediction markets transform raw noise into an actionable signal, offering a sharper lens on reality.

Information as a public good

According to Vladimir Tenev, the true societal value of prediction markets lies not in trading volume, but in the data they generate.

“While hundreds of thousands of people would want to trade what’s happening in the election, the information of who’s likely to win an election is something that affects hundreds of millions,” he explained.

The predictive insights extend far beyond the traders. News networks are already integrating market probabilities into their reporting, treating them as a complement to traditional coverage.

On “Squawk Box”, the chief executive dubbed it a material shift that positions prediction markets as a public information utility – one that democratizes access to collective intelligence and helps audiences navigate uncertainty.

Prediction markets: a market-driven future of truth

Tenev sees prediction markets evolving much like equities or derivatives, with multiple exchanges competing and brokers like Robinhood Markets connecting customers to the best venues.

He stresses that speculation, hedging, and arbitrage must coexist for markets to function properly, but the broader impact is clear: prediction markets are reshaping how society interprets information.

By pricing reality, they offer a scalable solution to the “information problem” – the challenge of finding clarity in a world awash with content.

If Vladimir Tenev is right, prediction markets won’t just be a niche trading product; they’ll become a cornerstone of how we measure truth in the digital age.

Note that Wall Street currently has a consensus “overweight” rating on HOOD shares with a mean target of $155, indicating potential upside of another 13% from here.

The post How prediction markets are fixing the ‘information problem’ appeared first on Invezz

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