Kalshi Cuts Incentive Program Amid Scrutiny Over Trading Activity

Kalshi, a prediction-market operator, has ended its trader-volume incentive program nearly a year early as scrutiny of activity in its crypto markets intensifies.

The decision comes after researchers identified repetitive trades around fixed dollar amounts, including roughly $5,500 in Ethereum perpetuals. Kalshi attributed these repeated transactions to market makers placing fixed-size quotes that other traders repeatedly hit.

Kalshi launched the Volume Incentive Program to increase activity on its central limit order book, but it is now shifting towards a broader framework that gives the exchange more flexibility in how it spends money to attract and retain traders. This new program allows for time-limited promotions tied to deposits, trading activity, or both.

Kalshi has broken several trading records this month, with $3.24 billion handled on September 27 alone, and its share of tracked prediction-market volume standing near 80%. The company is in advanced discussions to raise about $1 billion at a valuation of roughly $40 billion, according to Reuters.