Ethereum co-founder Vitalik Buterin has issued a stark warning about the direction of prediction markets, which he helped popularize through early investment in Polymarket. In a Tuesday post on X, Buterin expressed concern that these platforms are devolving into what he termed "corposlop" - optimized for addictive, low-value gambling rather than meaningful social utility.

Buterin specifically criticized the overreliance on sports betting, short-term crypto price wagers, and other high-dopamine products that drive volume but offer little larger societal benefit. He argued that platforms feel pressured to capitulate to these revenue-generating activities during bear markets, creating an "over-converging to an unhealthy product market fit." While acknowledging there's "nothing fundamentally morally wrong" with taking money from people with poor judgment, he warned that overreliance on this strategy is "cursed" and incentivizes platforms to seek out traders with bad opinions.

His critique comes as prediction markets like Polymarket and Kalshi have reached multi-billion-dollar valuations, attracting institutional players including Jump Trading and Coinbase. Buterin suggested these markets should pursue more ambitious use cases, such as personalized insurance systems, rather than functioning primarily as sportsbooks. His comments mark a significant shift from December 2025, when he described prediction market participation as "healthier" than traditional financial markets.