Crypto.com Hires Market Maker to Trade Against Users in Sports Contracts

TLDR:

• Crypto.com launches internal quant team to trade sports contracts against platform users.
• Market makers get a three-second head start on sports markets for faster pricing adjustments.
• The internal team operates across US derivatives and is fully disclosed to regulators.
• Platform aims to increase liquidity, attract external market makers, and improve trading depth.

Crypto.com is expanding its in-house trading operations by hiring a quant trader for its sports prediction market. The Singapore-based company plans to establish a market-making team to manage contracts tied to sports outcomes. 

This role will involve buying and selling financial contracts, effectively trading alongside platform users.

The move aligns Crypto.com with other industry players like Kalshi and Polymarket, which also maintain internal market-making teams. 

Market making in prediction markets often faces scrutiny for potential conflicts of interest, as internal teams may take positions opposite customer trades. 

Crypto.com has emphasized that proprietary trading is not a primary revenue source for the platform.

Internal Market-Making and Customer Interaction

Crypto.com has disclosed that its internal market makers “do not have access to proprietary data or customer order flow” before other participants. 

The company notes that market makers are given a three-second head start on sports contracts, allowing them a small window to adjust pricing before other users place trades.

According to the job listing, the team is expected to “maximize profits while carefully managing risks,” indicating that the role includes revenue generation alongside risk management.

 A company spokesperson stated the internal trading group operates “across all derivatives on the firm’s US platform” and is “fully disclosed” to the Commodity Futures Trading Commission, the federal agency overseeing derivatives markets.

The presence of internal market makers is intended to increase liquidity and improve trading efficiency. By providing consistent buy and sell opportunities, the platform aims to enhance overall market depth for sports contracts. 

External market makers are also encouraged to trade in real-time, often including established Wall Street firms like Susquehanna International Group and Jump Trading.

Internal teams have been a subject of debate in the broader prediction market industry. Critics argue that such operations may mirror traditional sportsbooks by trading against customers, creating potential conflicts of interest. 

A spokesperson for Crypto.com added, “The bottom line for customers is more competition and liquidity on the platform creates a better overall experience.”

Industry Context and Competitive Landscape

Crypto.com entered the sports prediction market in late 2024, listing contracts linked to sports events. Kalshi followed with its offerings, while Polymarket also established a sports-focused trading team. 

The growth of sports contracts has driven a substantial portion of trading activity for these platforms.

Major sports betting companies have responded by introducing their own prediction market apps. 

DraftKings and FanDuel have sought to combine traditional betting services with contract-based trading options. These developments reflect the increasing competition and adoption of prediction markets in the United States.

The structure of prediction markets remains under scrutiny by regulators and lawmakers. Platforms argue that they operate distinct businesses, separate from state-regulated gambling. 

This distinction allows exchanges like Crypto.com to offer contracts without falling under traditional sports betting rules.

Crypto.com continues to highlight that internal market makers enhance platform liquidity and competitiveness. 

The spokesperson reiterated, “The bottom line for customers is more competition and liquidity on the platform creates a better overall experience,” emphasizing the platform’s focus on a transparent trading environment.

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