## Exploiting Price Gaps: The Winning Strategy in Predictive Markets

High-frequency trading strategies on prediction platforms continue to fascinate crypto actors. At the heart of these approaches are arbitrage techniques, particularly effective when targeting inefficiencies of automated market makers (AMM). It is precisely this model that enabled a wallet under the alias “RN1” to generate extraordinary returns.

## A Large-Scale Arbitrage Operation

According to on-chain public data, the “RN1” address orchestrated over 13,000 transactions focused on sporting events. Among this impressive series of trades, a single position realized a profit of $129,000. Far from relying on predictive capabilities of outcomes, this approach mainly depended on the quick identification and exploitation of pricing discrepancies within decentralized exchange protocols.

## From Initial Capital to $2 Million

The financial journey remains remarkable: an initial investment of $1,000 transformed into amounts exceeding $2 million during 2025. This multiplication of capital demonstrates the effectiveness of the arbitrage strategy calibrated to AMM dynamics, beyond simple event predictions.

## Media Amplification of a Controversial Tactic

A French crypto influencer, known by the pseudonym @carverfomo, helped bring this methodology into the spotlight. His role in popularizing these high-frequency trading techniques increased interest in arbitrage approaches on prediction markets, fueling broader discussions on non-directional opportunities in crypto.

## Implications for the Market

These observations raise fundamental questions about the efficiency of AMMs in intense trading environments. The ability to generate substantial profits without relying on the capacity to predict actual outcomes suggests persistent flaws in the design or liquidity of certain protocols, inviting a deeper debate on the balance of decentralized predictive markets.