Kalshi Pushes Back: Denies CFTC Probe, Attributes $ETH Perpetual Activity to Liquidity Programs
Popular prediction platform Kalshi has officially denied reports that it is under formal investigation by the CFTC regarding unusual trading activity in its $ETH perpetual market.
The platform responded to concerns raised by market observers after repetitive trade patterns—specifically high volumes of identically sized ~$5,500 orders—were flagged on its ETH perpetual contracts. Research data highlighted a sharp gap where 24-hour volume hit ~$539 million against just $3.1 million in open interest.
Key Highlights:
>> No Formal Probe: Kalshi confirmed it has not been contacted by the CFTC regarding a formal examination and emphasized that sending routine daily trade data to regulators is standard operating procedure.
>> Liquidity Incentives at Work: The platform clarified that the clustered order sizes are a direct result of its liquidity incentive program. Automated market makers structure systematic orders to qualify for liquidity rewards, causing recurring trade patterns.
>> Anti-Wash Trading Controls: Kalshi emphasized it maintains dedicated surveillance tools and teams to prevent wash trading or self-matching orders on both its $BTC and ETH markets.
While routine regulatory review of daily data remains standard, Kalshi maintains that the heightened volume is driven by market-making strategies, not improper trading practices.
#writetoearn #Kalshi #ETH #CryptoNews #Write2Earn
Popular prediction platform Kalshi has officially denied reports that it is under formal investigation by the CFTC regarding unusual trading activity in its $ETH perpetual market.
The platform responded to concerns raised by market observers after repetitive trade patterns—specifically high volumes of identically sized ~$5,500 orders—were flagged on its ETH perpetual contracts. Research data highlighted a sharp gap where 24-hour volume hit ~$539 million against just $3.1 million in open interest.
Key Highlights:
>> No Formal Probe: Kalshi confirmed it has not been contacted by the CFTC regarding a formal examination and emphasized that sending routine daily trade data to regulators is standard operating procedure.
>> Liquidity Incentives at Work: The platform clarified that the clustered order sizes are a direct result of its liquidity incentive program. Automated market makers structure systematic orders to qualify for liquidity rewards, causing recurring trade patterns.
>> Anti-Wash Trading Controls: Kalshi emphasized it maintains dedicated surveillance tools and teams to prevent wash trading or self-matching orders on both its $BTC and ETH markets.
While routine regulatory review of daily data remains standard, Kalshi maintains that the heightened volume is driven by market-making strategies, not improper trading practices.
#writetoearn #Kalshi #ETH #CryptoNews #Write2Earn
