Kalshi Denies Trading Volume Manipulation Allegations

Kalshi's head of crypto business, IcoBeast.eth, has responded to allegations of trading volume manipulation and perpetual contract manipulation. The executive refuted previous doubts item by item, clarifying that a chart showing a '174x turnover rate' actually reflects the share of trading volume in the prediction market, not perpetual contract trading data.

IcoBeast.eth stated that Kalshi does not provide rebates for the crypto prediction market and that the statistics for contract quantity and nominal amount are consistent with other prediction market platforms. The executive also denied the accusation that 'SCM is designated by Kalshi's market makers,' claiming that any institution meeting CFTC regulatory requirements can apply to become a self-settling member.

Kalshi, which has been actively lobbying the CFTC to promote the legalization of prediction markets and recently reached distribution partnerships with brokerages like Robinhood and Webull, is currently seeking to complete a new round of financing at an approximate valuation of $40 billion. The controversy over trading volume authenticity may affect institutional market makers' willingness to quote and the valuation anchor points in new financing negotiations.