Crypto.com hires market-making team to trade against customers on its prediction market
The post Crypto.com hires market-making team to trade against customers on its prediction market appeared on BitcoinEthereumNews.com.
Crypto.com is recruiting traders to operate an internal market-making desk for trading directly against customers on its prediction market exchange. The Singapore-based company has posted a “quantitative trader” job listing, who will reportedly join a team responsible for buying and selling financial contracts of sporting events outcomes. According to Bloomberg’s Tuesday report, the role would require them to boost liquidity on Crypto.com’s prediction market trade contracts that pay out based on a specific event. Crypto.com prediction market adds ‘conflict of interest’ job Market making on prediction platforms is a controversial topic because, unlike sportsbooks, which set odds or profit from customer losses, they match opposing views in an open market. But opponents argue that internal trading desks are effectively placing the platform operator or its affiliates on the opposite side of customer trades. Crypto.com is not the only prediction market to deploy in-house traders on its exchange. Kalshi, the second most popular decentralized prediction platform in the US, also has an internal unit known as Kalshi Trading. Cryptopolitan had reported in early December that new US-market entrant Polymarket is also building its own internal trading operation, confirmed by people familiar with the matter. The firm has supposedly been approaching traders with professional sports betting backgrounds about joining the team. Detractors contend that the arrangements, arguing they would make prediction platforms operators benefit when customers lose. They might have enough ammo to support their case, owing to Crypto.com’s statement about how the successful candidate will “maximize profits while carefully managing risks,” so the internal desk is expected to generate trading gains. A spokesperson for Crypto.com pushed back on the idea, saying the company does not “rely on proprietary trading as a source of revenue,” adding that its internal market maker “does not have access to proprietary data or customer order flow”…
