Crypto.com Enters Prediction Markets with Sports Trading

Singapore-based cryptocurrency trading platform Crypto.com has become the latest company to make a foray into the ever-growing US prediction markets. On December 23, 2024, the crypto exchange announced the launch of a first-of-its-kind product that will allow American customers to make predictions on sporting events and trade their positions on those outcomes.

“Sports Events Trading offers an entirely new platform for U.S. users to engage nationwide at Crypto.com and in the Crypto.com app,” Kris Marszalek, co-founder and CEO of Crypto.com said. “This unique financial product allows users to trade their prediction on the outcome of a sports event. It’s a fundamentally new concept for sports, and we’re thrilled to be the first regulated platform in the U.S. to offer it to our users.”

This product launch comes on the heels of several other giant milestones and upgrades for Crypto.com. In August, the platform announced that its customers would now be able to fund crypto purchases through PayPal, a move which significantly strengthened its position as the world’s largest USD-supporting exchange. 

Unlike traditional sportsbooks, Crypto.com’s new offering blends aspects of derivative trading with sports betting and offers users greater flexibility on their predictions like never before. The sports event trading product is built off Derivatives North America, a proprietary event contract platform owned by Crypto.com and regulated by the Commodity Futures Trading Commission (CFTC). 

Sports Sidesteps CFTC Regulatory Restrictions on Gaming Through Derivatives Framework

Dubbed ‘Sports,’ this new product will see US-based Crypto.com users set, buy, sell and potentially exit their predictions on sporting events. Like most forms of derivatives, participants here will take on the role of sportsbooks and trade on speculating sports outcomes, with the contract deriving its value from underlying cryptocurrency assets. 

For instance, Crypto.com currently offers “Yes/No” trading outcomes with prediction rates for participating teams. Interested users will select their outcome for a stipulated price which can be later bought by other participants. A user who correctly predicts the event wins off other contract participants who bet against that accurate outcome. 

“While the first product of its kind, the sports event trading product is similar to other event contracts on cryptocurrency offered by Crypto.com-Derivatives North America, a CFTC-regulated exchange,” the company said.

The prediction market in the US has grown in scale in 2024, thanks to election prediction platforms like Kalshi and Polymarket. However, whether this derivatives-trading style of sports betting will ultimately be accepted by regulators remains to be determined. The CFTC expressly outlaws gaming activities, but Crypto.com has managed to sidestep that regulatory hurdle by operating under a trading framework rather than as a betting service.

Overall, the product charts a new course in sports prediction, bringing together textbook financial markets, cryptocurrency and a form of sports wagering. The prospects are also notably appealing for users who now have a broad range of options to interact with the sports predictions market. 

Crypto.com Positions Product for Massive Super Bowl LIX Betting Market Frenzy

With the Super Bowl LIX scheduled for February 9, Crypto.com is not hiding the fact that its launch is strategically targeted at arguably the most popular sports betting event in the US. Trading decisions on event outcomes are already available on the website and app, with Kansas City Chiefs holding a 23% win probability. 

Crypto.com has also launched a campaign offering users a chance to win from a US$1 million pool when they newly sign up on Crypto.com and make a trade on Sports. This promotion lasts till January 13, 2025 and is paid out in the Cronos Crypto Basket. 

“What’s more, if you successfully register for a Crypto.com App account with your friend’s referral code or link, both you and them will receive $10 of CRO after your first Sports Event Contract trade is complete,” the company revealed in its statement.




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