Kalshi is cancelling their volume faking program
they just filed this motion to the @CFTC indicating that they were terminating their "Volume incentive programme" (a.k.a sponsored wash trading).
Looks like they are trying to backpedal quietly now that they got exposed.
wise move imo
they have a Supreme Court case coming against 8 states that wants them dead so better not give them amo with extra fraud
Expect Kalshi's nominal volume to drop markedly
We just found how kalshi is faking their volume !
turns out Kalshi in-house market markers pay ZERO (0) fees when trading against themselves
takers fees :
0.003%
makers rebates :
+0.003%
cost of wash trading :
0.003 - 0.003 = 0
Crucially this applies only to "self-clearing
@kayvz@mignano ZEIT shipped the concept earlier.
@ZEITFinance pioneered the concept with its Worldview generator.
Same principle:
Write down your thesis -> get a prediction-market-backed portfolio.
app.zeit.finance/worldview
@AndrewCurran_ Interesting. Some are already experimenting with that. @ZEITFinance has a product like that where you write down a thesis and it generates you a portfolio backed by prediction markets
@spenciefy Worldview already handles that take.
@ZEITFinance pioneered the concept with its Worldview generator.
Same principle:
Write down your thesis -> get a prediction-market-backed portfolio.
app.zeit.finance/worldview
@vaibhavbetter The earlier version is already live.
@ZEITFinance pioneered the concept with its Worldview generator.
Same principle:
Write down your thesis -> get a prediction-market-backed portfolio.
app.zeit.finance/worldview
Kalshi just LOST another major case and appealed to the Supreme court
the coming ruling will decide the future of the entire Prediction Market industry
an alliance of 8 different states have tried to ban Kalshi and so far won every appeal :
3rd Circuit: Kalshi wins ✅ -> state appeals
9th Circuit: Kalshi loses ❌-> Kalshi appeals
6th Circuit: Kalshi loses again❌ -> Kalshi appeals to Supreme Court
--- we are here ---
Supreme court : [to be determined]
the fundamental question is the same as for the Polymarket vs NY case
"Are prediction markets gambling or finance ?"
the States allege that Kalshi is a sports gambling platform and should thus be subject to states gambling laws
Kalshi pretends that they are a financial derivative platform and should thus be regulated by the CFTC
if the supreme court rules against Kalshi, it's the end for regulated Prediction Markets as the precedent would apply everywhere.
right now PMs are considered derivatives :
CFTC regulation = one federal license = access to all 50 states
if they get classified as gambling :
state regulation = one license *per state* + 50 different set of rules
so whatever you think of Kalshi, I hope they win that case.
You can blame them and Polymarket for leaning too much into sports and predictably attracting regulations, sure, but in the end the legit usecases of PMs would suffer too if they lost
I hope the majority Trump appointed Supreme Court doesn't disappoint
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