Crypto.com Moves To Trade On Its Own Prediction Market

Crypto.com is expanding its prediction market by setting up an internal trading team that will buy and sell contracts against regular users. The move has drawn attention because it places the exchange on the other side of customer trades, raising questions about fairness, transparency, and how prediction markets should operate as they grow into sports-based trading.

Crypto.com Builds An Internal Trading Desk

Crypto.com recently posted a job listing for a quantitative trader who would join an internal market-making team. 

The role involves trading contracts tied to sports outcomes on the company’s prediction market. These contracts pay out depending on whether a specific event happens, such as the result of a game.

The goal of the team is to keep trading active by providing buy and sell orders when there are not enough users on both sides of a trade. This process, known as market making, is common on financial exchanges. However, it becomes more sensitive when the platform operator is the one placing trades.

According to reports, the job description notes that the trader would aim to manage risk while generating profits. 

That detail has added to concerns that Crypto.com could benefit directly when customers lose money. Critics say this setup blurs the line between an exchange and a sportsbook, especially as sports contracts attract more retail traders.

Conflict Questions Follow Prediction Market Growth

Crypto.com is not the first platform to face this issue. Kalshi, another prediction market that recently raised $1 billion in fresh capital at an $11 billion valuation, runs its own internal trading arm. 

Polymarket has also been linked to plans for a similar operation. These setups have already triggered lawsuits, regulatory attention, and public criticism.

According to reports, one key concern is access. Crypto.com’s rules show that market makers may receive sports-related contracts a few seconds before retail traders. Even a short head start can matter in fast-moving markets. Opponents argue that this gives internal teams an unfair advantage.

Crypto.com has denied that its trading desk has special access to customer data or order flow. A spokesperson said the company does not depend on proprietary trading for revenue and that the internal desk operates under clear rules.

Regulation And Industry Pushback Continue

Crypto.com says its prediction market activities are fully disclosed to the US Commodity Futures Trading Commission (CFTC). The company argues that having more active traders improves pricing and makes the platform easier to use.

Similar arguments have been made by Kalshi after a class action lawsuit accused its internal unit of acting like an unlicensed sportsbook. Kalshi’s leadership has said prediction markets are peer-to-peer and that market makers simply help trades happen.

In a separate development,  Crypto.com and the VerifiedX Network have partnered to offer institutional-grade custody, liquidity, and OTC trading support for about $1.5 billion in assets.