Kalshi Executive Responds to 'Volume Manipulation' Allegations: Need to Distinguish Prediction Markets from Perpetual Contracts

BlockBeats news, September 21: Kalshi's head of crypto business, IcoBeast.eth, posted a statement addressing external questions about alleged fake trading volume in Kalshi's crypto prediction market and its perpetual futures Self-Clearing Member (SCM) arrangements. He stated that the Artemis chart shows prediction market trading volume share, not perpetual futures trading volume; Kalshi does not offer rebates for crypto prediction markets, and the calculation methods for contract count and notional amount in prediction markets are consistent with other prediction markets, making them comparable.

Regarding the claim that "SCMs are market makers selected by Kalshi," he said this is not true. Any institution meeting regulatory requirements can become a self-clearing member of a CFTC-regulated exchange, and "fair access" is also one of the regulatory requirements. He also stated that all exchanges improve liquidity through rebates and incentive programs, including CME, Hyperliquid, and Binance.

As for Kalshi's perpetual futures business, he acknowledged that it is still in its early stages, but said that unlike offshore perpetual futures trading platforms, Kalshi is required to publicly file its incentive programs, so all related incentive arrangements can be publicly viewed.