Crypto.com says market maker boosts liquidity, denies trading edge on customers
Crypto.com is establishing an internal market-making team for its prediction markets to boost liquidity while denying customers any trading advantage.Summary
Cryptocurrency exchange Crypto.com is developing an internal market-making team for its prediction markets, asserting that this move complies with federal regulations and is intended to enhance liquidity. This news, reported by Bloomberg, has raised concerns about potential conflicts of interest when exchanges trade against customer orders. A Crypto.com spokesperson clarified that their internal trading team is disclosed to the US Commodity Futures Trading Commission (CFTC) and operates under the same rules as external market makers, ensuring fairness. The company explicitly stated that its internal market maker does not receive preferential access to proprietary data or customer order flow, and Crypto.com does not use proprietary trading as a revenue source, maintaining a risk-neutral model focused on retail fees. The practice of using market makers is common, as competitors like Kalshi and Polymarket also utilize professional trading firms or dedicated liquidity providers to support trading volumes.
(Source：Cointelegraph)