🥚The Chicken and the egg problem

Considering what we have mentioned before and the ecosystem actors present in all Predicition Markets we can arrive to the conclusion that we might Initially face a tridimensional chicken and the egg problem:

• Traders can’t trade if there is not enough liquidity.

• In the absence of subsidies or a significant trading volume allowing them to profit from the spread, providing liquidity is not profitable due to the impermanent loss (see Lack of Liquidity section).

• Information seekers cannot get accurate estimates as markets are only efficient if there are a significant amount of actors participating. They can’t convince other actors either if the markets are not widely used.

Therefore we need to find a way to initially solve the chicken and the egg problem....