According to @EvgenyGaevoy, insider trading on prediction markets like Polymarket and Kalshi should not be normalized, and he states he will think less of those who engage in it, signaling reputational risk for market participants, source: X post by @EvgenyGaevoy, Jan 5, 2026. He publicly endorses @karbonbased’s guidance that if you possess material non-public information obtained through private channels, you should not trade the related market, source: X post by @EvgenyGaevoy, Jan 5, 2026; X post by @karbonbased, Jan 5, 2026. The guidance further warns that relying on a technicality that insider trading rules do not apply to CFTC derivatives is unlikely to hold up and may carry criminal risk, including prison, source: X post by @karbonbased, Jan 5, 2026; supported by X post by @EvgenyGaevoy, Jan 5, 2026. Trading takeaway: abstain from executing or signaling trades on Polymarket or Kalshi when in possession of material non-public information to mitigate legal exposure and reputational damage, source: X post by @EvgenyGaevoy, Jan 5, 2026; X post by @karbonbased, Jan 5, 2026.