Brief
- MyPrize’s social gaming app will now offer Crypto.com Prediction Market Contracts, joining distributors like Hollywood.com and Trump Media in the rapidly growing industry of over $2 billion in weekly trading volume.
- The deal reflects the convergence of social platforms and financial markets, as Crypto.com uses its CFTC-regulated derivatives trading license to expand distribution of the prediction market.
- Similar distribution deals are proliferating across the industry, with Kalshi partnering with Robinhood and FanDuel launching its own prediction market app through CME.
Social gaming app MyPrize is taking on the prediction markets by signing a distribution deal with the North American subsidiary of crypto exchange Crypto.com.
MyPrize will now list Crypto.com’s event contracts for “sports, politics, cryptocurrency and more” on its app, which the company says has more than 1 million users worldwide. He joins a growing list of distributors for Crypto.com prediction markets, including daily fantasy sports app Hollywood.com. outsiderand President Donald Trump’s media company, Trump Media.
MyPrize’s announcement did not specify how the two companies would share revenue, but event contract distribution agreements typically involve the predictive market company giving the distributor a cut of trading fees generated on listed markets. Neither company immediately responded to a request for comment from Decrypt.
The prediction market industry is growing rapidly. Over the past week, trading volume on prediction markets remained above $2 billion, driven primarily by leaders Kalshi and Polymarket, according to a dashboard from Dune Analytics. However, the dashboard does not include event contracts for Crypto.com or more recent offerings from sports betting companies, such as FanDuel.
Prediction markets, at the US federal level, are regulated by the CFTC. Crypto.com’s subsidiary, North American Derivatives Exchange, holds a Designated Contract Markets license through the CFTC. since 2004. The license allows them to self-certify event contracts, a type of federally regulated financial product that allows traders to speculate on the outcome of an event. The company began offering prediction markets in December last year.
“We are seeing a massive shift in how financial markets are converging with other products. We have been at the forefront of cryptocurrency convergence with TradFi,” said Travis McGhee, Managing Director and Global Head of Capital Markets at Crypto.com, in a press release. “Now we are at the forefront of a similar convergence with live social platforms and financial markets with our partner MyPrize. »
MyPrize offers free social games or sweepstakes casinos. This means that users do not need an initial purchase to play, but can exchange their gold or Sweeps Cash winnings for real money once they become eligible.
Offers like this are common among DCM licensees entering the prediction market. Prediction market leader Kalshi and trading platform Robinhood teamed up earlier this year to offer users March Madness-themed event contracts. During a recent earrings call, Robinhood CEO Vlad Tenev said the markets “are really on fire,” adding that trading volumes have doubled every quarter since the offering launched on his app.
In August, sports betting giant FanDuel, through its parent company Flutter, signed a deal with derivatives exchange CME to list its event contracts on a new app specifically aimed at prediction market users.
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