Crypto.com Steps into Forecasting Arena through Sports Trading Integration

The platform based in Singapore known as Crypto.com has recently expanded into the US prediction market sector. The exchange made a public announcement on December 23, 2024, revealing that it has introduced a novel service, which gives US-based users the capability to forecast outcomes of sports events and manage their stakes on these predictions.

“We are introducing Sports Events Trading, a breakthrough platform for our American audience which can be accessed via Crypto.com and the Crypto.com app,” shared Kris Marszalek, co-founder and CEO of Crypto.com. “This revolutionary offering permits customers to speculate on sports event results. It’s a pioneering concept within the sports realm, and we are excited to be the pioneering US-regulated platform bringing it to our clientele.”

This innovative service is a continuation in a series of significant developments and enhancements for Crypto.com. Previously in August, the exchange had announced enabling its users to use PayPal for funding their crypto acquisitions, a strategy that solidified its standing as the top USD-compatible exchange globally.

In a stark contrast to conventional sports wagering establishments, Crypto.com combines elements of derivative trading with the dynamics of sports betting, thereby providing an unprecedented level of flexibility to users in their predictions. Developed based on Crypto.com’s own proprietary platform, Derivatives North America, the sports event trading tool adheres to regulations by the Commodity Futures Trading Commission (CFTC).

Regulatory Challenges Surmounted as ‘Sports’ Leverages Derivative Model

Termed ‘Sports,’ the fresh feature enables users from the US on Crypto.com’s platform to create, buy, sell, and potentially liquidate positions on sports event predictions. This participation mimics traditional sportsbooks, but in this scenario, users speculate on sports results with a derivative contract that is linked to the value of cryptocurrency assets.

For example, Crypto.com presents binary outcomes for trading with specified odds for each team involved. Users can lock in their choice at a quoted price, which can later be purchased by other traders. The participant who accurately forecasts the result gains from other participants who bet against the correct prediction.

“Although this product is the first of its type, it operates akin to other event contracts in the cryptocurrency space offered by Crypto.com-Derivatives North America, an exchange compliant with CFTC regulations,” the company stated.

The prediction market in the US experienced significant growth in 2024, with platforms like Kalshi and Polymarket leading election predictions. Nevertheless, it remains to be seen if this derivative-based form of sports wagering will secure regulatory acceptance. The CFTC has officially banned gambling operations, yet Crypto.com has successfully navigated these regulations by framing its service under a derivatives trading model as opposed to a gambling operation.

The launch carves a new path within the sports prediction landscape that amalgamates classic financial market mechanisms, cryptocurrency, and a unique twist on sports betting. The product also offers a vibrant array of options, potentially enhancing user engagement within the sports prediction domain.

Anticipation Ramps Up for Super Bowl LIX as Crypto.com Taps into the Excitement

With the Super Bowl LIX on the horizon for February 9, Crypto.com is pointedly aligning its product launch with this momentous sports betting event in the US. Options for trading on event outcomes are already live on the platform’s website and app, featuring a win probability of 23% for the Kansas City Chiefs.

Aiming to boost user sign-ups, Crypto.com has instituted a promotional campaign. New users who join Crypto.com and make a Sports trade are eligible to partake in a draw from a $1 million pool. The promotion continues until January 13, 2025, and payouts will be made in the form of the Cronos Crypto Basket.

“Additionally, by registering for a Crypto.com App account using a friend’s referral code or link, both parties will be entitled to $10 in CRO once the initial trade on a Sports Event Contract is concluded,” the company disclosed in its official release.