Polymarket Follows Kalshi’s Controversial Market-Making Strategy
Polymarket is assembling an internal trading team that will take positions against its users, adopting a contentious strategy pioneered by rival prediction platform Kalshi. The MOVE comes as Polymarket prepares for its US relaunch following regulatory settlements.
The New York-based prediction market has begun recruiting traders, including sports betting specialists, to staff the new unit according to Bloomberg sources. This mirrors Kalshi's established practice of operating an in-house trading arm that provides liquidity by taking the opposite side of customer bets.
While exchanges defend such market-making as necessary for liquidity, critics argue it transforms prediction platforms into de facto sportsbooks. The controversy highlights ongoing tensions between peer-to-peer ideals and practical market operations in the emerging prediction economy.
