Crypto.com to Build In‑House Market‑Making Desk for Prediction Markets
Crypto.com has posted a job for a quant trader to run an internal market‑making desk for its sports prediction markets. The role will buy and sell contracts tied to sports outcomes, provide systematic liquidity, manage risk, and seek profit — effectively operating as an in‑house trading desk that can take the opposing side of customer bets. Crypto.com told Bloomberg the desk will not use proprietary customer order flow or data as a revenue source and said market makers get a brief technical advantage window (3 seconds) on sports markets. The move revives conflict‑of‑interest concerns — critics say exchanges trading against users can make prediction platforms resemble traditional sportsbooks rather than neutral exchanges. The decision mirrors scrutiny of other platforms (eg, Kalshi, Polymarket) and reflects a broader liquidity challenge in prediction markets; industry observers see internal market making as a practical response to thin order books. For traders, expect deeper institutionalised liquidity on Crypto.com’s prediction products but also higher scrutiny on transparency and fairness, which could affect user trust, order flow and platform volumes.
Neutral
The news is neutral for crypto prices because it does not directly concern a tradable token; it concerns Crypto.com’s product operations and market‑making strategy for prediction markets. Short term: the announcement may increase trading activity and volumes on Crypto.com’s prediction products as institutional liquidity improves, which could benefit associated exchange fee revenue but not necessarily push token prices. It may also trigger user backlash or regulatory scrutiny if perceived as unfair, which could reduce platform activity. Long term: improved liquidity mechanisms can make prediction products more viable and attract users, supporting platform health; conversely, sustained conflict‑of‑interest concerns or regulatory action could harm user trust and volumes. Overall, the immediate price impact on related crypto assets is limited, so the categorisation is neutral — watch for follow‑up developments on transparency, regulatory responses, and any changes to product economics that could shift sentiment.