Crypto.com has joined the list of crypto firms foraying into the prediction markets space in recent months. The exchange, on Tuesday, unveiled “OG”, its own standalone platform to let people vote on the potential outcomes of future events and earn rewards. At present, Polymarket and Kalshi are the top two prediction markets collectively controlling majority of the market share.
Nick Lundgren, the chief legal officer of Crypto.com has been appointed as the CEO of OG. Under his oversight, the exchange’s leadership aim to establish OG as a premier sports-focussed prediction market.
“Crypto.com was the first company to offer federally licensed sports prediction contracts in the United States, so launching OG is very fitting. Sports are the natural hub of prediction markets, and we see a massive opportunity to provide fans with an all-encompassing platform where it pays to be right,” said Lundgren, commenting on the development.
Sports event contracts regulated by the The Commodity Futures Trading Commission (CFTC) will make it to OG, Crypto.com said. Other event contracts across sectors including financial, political, cultural, and entertainment will also be available for engagement.
Taking about what nudged the exchange to step into the predictions market space, its co-founder and CEO Kris Marszalek said, “We’ve experienced 40x weekly growth in our prediction market business over the last six months. This type of growth warrants a concerted effort with a standalone platform. Our goal is to establish OG as the premier sports prediction market technology with the best customer experience.”
Coinbase, Robinhood, Grok, YZi Labs are other platforms that have, in recent times, forayed into prediction markets arena.
In recent weeks, however, Polymarket has witnessed resistance in certain regions like Portugal, Ukraine, and U.S.’s Nevada state over unlicensed operations, gambling enabling, and insider trading concerns among other reasons. This testifies that the regulatory unclarity around prediction markets seeks immediate attention.