Kalshi received a warning about manipulation from Spotify prior to settling a $3.3 million agreement
Kalshi, a prediction market platform, settled contracts worth over $3.3 million for a market based on Spotify's US daily chart, despite receiving a warning about potential manipulation of the underlying streaming data. Trader Caleb Davis alerted Kalshi in late June about anomalous streaming surges for specific songs, like Malcolm Todd's "Earrings," which saw an improbable spike to number one. Spotify later confirmed it removed hundreds of thousands of fake streams for that song, though it did not revise the original chart used for settlement. Kalshi proceeded with the payout after its compliance officer stated only Spotify could confirm manipulation and that no evidence was found of traders suspiciously profiting. Davis disputes this, pointing to unusual position buildups. Following the incident, Spotify asked Kalshi to remove its branding and clarify no partnership exists. The controversy emerges as the CFTC issues guidance urging prediction markets to better vet data sources for reliability and manipulation risks. Kalshi has halted new Spotify-related contracts but an existing July contract remains active.
cryptonews.ru13 год тому
