Crypto.com Building Internal Market Making Team For Predictions Platform

Cryptocurrency exchange platform Crypto.com is looking to expand into prediction markets and has started recruiting for an internal market making team for its platform.

According to a Dec. 23 Bloomberg report, the exchange is looking for someone who will help buy and sell contracts that are tied to the outcomes of sporting events on Crypto.com’s predictions market platform. 

The report added that the person would actively trade against customer orders to support liquidity across sports contracts and other derivatives that are offered on the company’s US platform.

Crypto.com Market Making Team Won’t Have Access To Proprietary Data

The prediction markets team will operate similar to how such teams operate on crypto exchanges or on traditional finance platforms. These market makers actively try to match open orders in a platform’s order books to help them be filled quicker. 

A spokesperson highlighted the benefits of Crypto.com’s internal trading team in a recent statement, and said that it will introduce “more competition and liquidity on the platform,” as well as “create a better overall experience.” 

While the new team could boost liquidity on Crypto.com’s prediction markets platform, the structure does start to resemble a traditional sportsbook that profits from customer losses. 

The spokesperson addressed concerns that an internal market making team will have access to information before the rest of the market. They said that “no market market at Crypto.com gets a ‘first look,’ and our internal market maker does not have access to proprietary data or customer order flow before other market makers or participants.” 

The spokesperson added that Crypto.com does not rely on proprietary trading as a revenue source. 

“We have a simple business model providing our retail customers access to digital assets for a fee, while staying risk neutral,” they said.

Crypto.com Not The First Prediction Markets Platform To Consider Market Making 

Other players in the prediction markets space also use professional trading companies or dedicated liquidity providers to facilitate activity on their platform.

Kalshi, which is one of the largest platforms in the space and operates a federally regulated event-contracts exchange, relies on designated market makers instead of relying solely on a peer-to-peer order book. 

It was reported that a quantitative trading company called Susquehanna International Group has provided Kalshi with market-making services since 2024.

Meanwhile, decentralized prediction markets platform Polymarket has reportedly also started building an internal market-making team. This move has raised eyebrows, with critics saying that it ships away at Polymarket’s edge as a decentralized platform. 

Prediction Markets Volumes Have Been In A Strong Uptrend

Prediction markets are platforms that let users bet on the outcomes of a variety of real-world events ranging from politics to sports. 

Prediction markets volumes (Source: Token Terminal)

In the past few months, volumes on these platforms have soared, data from Token Terminal shows. 

That surge started in September, when volumes jumped from about $1.397 billion in August to $3.641 billion in September. This rise in activity continued in the months that followed, with volumes reaching over $8 billion in November. 

The rising popularity of prediction markets has prompted several companies to expand into the space. Among them are crypto exchanges Coinbase and Gemini, who are both working towards creating their own “everything” apps.