I imagine the hardest part to implement in a decentralized identity/reputation system is how to protect against sybil attacks. Whats to stop me from creating 1000 fake "accounts" and giving the target adjuster shitty reviews?
Anybody can advertise the adjuster in a positive or negative light anywhere, not just in the DAC's forum page. But in order to actually affect how much they can spend you have to actually affect the adjuster's prediction market.
Ah let me see if I understand what you mean. Let's say that I want to be an adjuster. I create a coin called "bitBeard" to represent my adjusting firm. As people trust me they will purchase more shares in bitBeard which will drive my price up. If I'm on the right track this logic seems to say that my prediction market will go up if I can turn turn a profit. Turning a profit doesn't mean that I'm honest
But if you turn away to many claims, then people will start to complain about you, and your prediction market will fall, while your competitors rise.
Prediction markets ebb and flow regardless of the asset being traded. Look at bitcoin, price dropped but it was because of mtGoX, not because of bitcoin itself