Kalshi’s head of crypto business, IcoBeast.eth, responded on Sept. 21 to criticism over alleged fake trading volume in Kalshi’s crypto prediction markets and questions around self-clearing members, or SCMs, tied to its perpetual futures business. He said an Artemis chart cited by critics shows prediction market volume share rather than perpetual futures volume, and argued the two should not be conflated.
He also said Kalshi does not offer rebates for its crypto prediction markets, adding that contract counts and notional value in those markets are calculated the same way as at other prediction market venues, which he said makes the figures comparable. Addressing claims that SCMs are market makers selected by Kalshi, he said that characterization is false. According to his statement, any institution that meets regulatory requirements can become a self-clearing member at a Commodity Futures Trading Commission-regulated exchange, and fair access is itself a regulatory requirement.
IcoBeast.eth added that exchanges broadly use rebates and incentive programs to improve liquidity, naming CME, Hyperliquid, and Binance. On Kalshi’s perpetuals business, he acknowledged it is still in an early stage, but said incentive programs must be publicly filed, unlike on offshore perpetual futures platforms.
On Sept. 21, Kalshi’s head of crypto business, IcoBeast.eth, responded to criticism over alleged fake trading volume in Kalshi’s crypto prediction markets and questions surrounding self-clearing members, or SCMs, in its perpetual futures business.
He said an Artemis chart referenced in the debate shows prediction market volume share, not perpetual futures volume. Kalshi does not provide rebates for its crypto prediction markets, he added, and the way contract counts and notional value are calculated in those markets is consistent with other prediction market platforms, which in his view makes the figures comparable.
Response to SCM claims
IcoBeast.eth also rejected the claim that SCMs are market makers chosen by Kalshi. He said that is not true. Any institution that satisfies regulatory requirements can become a self-clearing member at an exchange regulated by the U.S. Commodity Futures Trading Commission, or CFTC, and “fair access” is one of those regulatory requirements.
Comments on liquidity incentives
He said exchanges use rebates and incentive programs to improve liquidity, citing CME, Hyperliquid, and Binance.
On Kalshi’s perpetual futures business, he acknowledged that the segment is still at an early stage. He said that, unlike offshore perpetual futures trading platforms, Kalshi must publicly file its incentive programs, which means those arrangements are available for public review.
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