Trading patterns on prediction markets Kalshi and Polymarket are raising questions about the quality of reported volumes. Both companies deny so-called wash trading or other artificial activity, CNBC writes.
On Kalshi’s perpetual ether futures, trades around 5,500 dollars accounted for nearly half of the dollar volume on September 20.
At the same time, Polymarket’s international platform has reported large volumes in contracts with very low probabilities.
The companies cite, among other things, arbitrage and professional traders.
The issue is significant because trading volumes are used to demonstrate growth.
Polymarket is reportedly raising capital at a valuation of more than 20 billion dollars, while Kalshi is said to be discussing financing at a valuation of 40 billion dollars.
Both companies are also reportedly considering an IPO next year.
