Crypto Biz: Exchanges place their bets on prediction markets

Prediction markets are moving into crypto’s mainstream as Crypto.com’s in-house market maker raises fairness questions and Coinbase doubles down on growth.

Prediction markets have emerged as one of the cryptocurrency sector’s most consequential, if not contested, frontiers. Once the domain of niche platforms, they are now attracting serious attention from major exchanges, venture capital and even traditional financial institutions. 

As prediction markets move closer to the core of crypto’s business model, Crypto.com has sparked questions around fairness and market structure after seeking to hire a quantitative trader for an in-house market-making unit that would buy and sell contracts alongside other traders.

Meanwhile, Coinbase has signaled a longer-term bet on regulated prediction markets with its acquisition of The Clearing Company, an onchain prediction market startup backed by a team with experience at Kalshi and Polymarket.

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