Prediction Markets Explode: Trump Media Bets Big on Crypto’s Next Frontier

Prediction markets are eating traditional finance's lunch—and Trump Media just placed its chips on the table.

The New Casino Wall Street Can't Regulate

Forget stock picks and bond yields. The real action's happening in prediction markets where crypto meets real-world outcomes. Political elections, sports results, even celebrity drama—all becoming tradable assets on blockchain platforms.

Trump Media's Crypto Gambit

The company's diving headfirst into decentralized forecasting platforms. No middlemen, no traditional brokers—just pure speculative chaos powered by smart contracts.

Traditional finance types are clutching their pearls while decentralized platforms process millions in volume daily. Another case of innovation leaving regulators in the dust.

When Bets Become Assets

Prediction tokens are outperforming traditional investments this quarter. The market's voting with its wallet—and Wall Street's becoming irrelevant faster than a Bitcoin transaction confirms.

Another day, another sector where crypto proves it doesn't need permission to disrupt. The only prediction that matters? Traditional finance will keep complaining while missing every profitable trend.

Key Takeaways

• Weekly prediction market trading volume hit a record high of over $2 billion last week, according to research platform Dune.
• This month alone, two of the largest events contracts operators were eying valuations above $10 billion.

Digital prediction markets are drawing in throngs of users—and investors.

The markets have become increasingly popular, sparking a rush of new and rumored capital into them. Just this month, New York Stock Exchange parent Intercontinental Exchange (ICE) announced a $2 billion investment in Polymarket, recently said to be in discussions to raise money at a valuation as high as $15 billion. (Polymarket did not respond to Investopedia's request for comment in time for publication.)

Kalshi was reportedly receiving funding offers valuing it at more than $10 billion, double what it fetched weeks earlier on a $300 million funding round. And sports betting giant DraftKings (DKNG) last week acquired predictions platform Railbird.

Why This News Matters To You

Speculating is trending in stock markets, sports betting, and the broader world of prediction markets. The latter are shaping up up to be the new playgrounds for retail investors—and attracting those who want in on the action.

The investor interest follows user activity. Weekly prediction market volume hit a record high last week of over $2.3 billion, across a handful of tracked platforms including Polymarket and Kalshi, according to estimates from research platform Dune derived from data on the blockchain.

Trump Media & Technology Group (DJT), the company co-founded by President Donald Trump, is the latest to advance further into prediction markets. The company said Tuesday that it partnered with Crypto.com, a coin trading platform whose name adorns the Lakers' basketball stadium, to launch Truth Predict. It will let users bet on the outcomes of events, whether a basketball game or an election, through the social platform.

Polymarket and Kalshi launched in 2020 and 2021, respectively, around the time when meme-stock trading took off, and now they have a lot more competition.

Robinhood (HOOD) launched its prediction markets hub this year in time for the NCAA's March Madness tournament and the Federal Reserve's interest rate decisions. How its prediction markets are faring will likely be a highlight when it reports third-quarter earnings next week.

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