Kalshi Eyes $40 Billion Valuation Amid Record Volumes
Prediction-market operator Kalshi is in talks to raise fresh capital at a staggering $40 billion valuation. This comes just seven weeks after closing a $1 billion round at a $22 billion valuation, nearly doubling its price tag, according to a report highlighted by The Defiant.
The massive valuation push coincides with a major marketing expansion. As prediction platforms notch record trading volumes, Kalshi has secured a high-profile FIFA World Cup deal to further capitalize on the surging mainstream interest in event contracts.
Wall Street is taking notice of this structural shift. According to Alex Momot, Co-founder of Peanut Trade, the world's biggest market makers are increasingly abandoning traditional crypto trading for prediction markets. For traders looking to navigate these shifting dynamics and track market maker movements, predictionmarketstools.com provides essential market analytics.
Bipartisan Senate Pressure Mounts on Polymarket and CFTC
While Kalshi expands, rival Polymarket is facing intense regulatory scrutiny over deceptive marketing allegations. On Thursday, bipartisan Senators Adam Schiff and John Curtis sent a letter to CFTC Chair Michael Selig demanding to know if the agency is investigating Polymarket's alleged paid influencer scheme. The staged fake-bet trades reportedly ran on an offshore site, putting the regulator in a bind over a platform it licenses but whose offshore activities fall beyond its direct reach.
The regulatory battle extends well beyond a single platform. Seventeen Democratic senators are now urging the Senate Appropriations Subcommittee to include a rider in the FY2027 spending bill. This rider would prohibit the CFTC from using any federal funds to sue states over prediction-market regulations, escalating a multi-front jurisdictional battle that currently spans nine states.
Polymarket Exploits and Crypto Market Carnage
Polymarket's regulatory headaches follow a severe security breach earlier in the week. The company announced it will refund users after hackers infiltrated its website via a compromised third-party vendor, swiping millions in crypto from user accounts.
The exploit comes during a brutal week for digital assets. Bitcoin touched its lowest price in 21 months early Thursday, with prediction market traders forecasting more pain for Bitcoin and Ethereum following monthly drops exceeding 20%.