Kalshi has found itself embroiled in controversy after a report revealed it allegedly paid influencers to target rival Polymarket and its CEO, Shayne Coplan. This came just days after the FBI raided Coplan’s home, leading to speculation about the nature of the investigation. According to a Pirate Wires article published by Mike Solana, an executive at Founders Fund, Kalshi used social media influencers to disparage Polymarket’s CEO and suggest criminal wrongdoing, including a tweet by former NFL player Antonio Brown.
Kalshi’s actions appear to have backfired, especially considering its public image as a regulated U.S. prediction market. The situation has sparked a backlash, with critics accusing Kalshi of hypocrisy, particularly given the company’s position on regulation. Jeff Park from Bitwise Investments called out Kalshi for undermining its stance on moral integrity.
In a possible act of retaliation, shortly after the article was published, a series of rumors surfaced online claiming that Kalshi was under investigation by multiple U.S. agencies, including the Federal Trade Commission. These claims, however, were vague and lacked any credible sources. Polymarket quickly denied any involvement in spreading these rumors.
The clash between Kalshi and Polymarket occurs amid growing optimism for prediction markets, especially following Donald Trump’s election victory, which was seen as validating the forecasting capabilities of such platforms. The incoming administration, under Trump, could also offer a more crypto-friendly regulatory environment, which might benefit the prediction market sector. However, both Kalshi and Polymarket have faced their share of regulatory hurdles.
While Kalshi’s actions raise questions about ethical competition in the tech and financial industries, it remains to be seen how this controversy will impact the future of prediction markets, especially as new regulatory opportunities may emerge with the shift in political leadership.
