The Good Tech Companies - Crypto.com Targets Trillion-Dollar Prediction Market Opportunity With Regulatory-First Approach

Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Crypto Com targets trillion dollar prediction market opportunity with regulatory first approach, by a Sean Pondy. Greater than as prediction markets gain momentum in the crypto space, platforms are racing greater than to build infrastructure that combines regulatory compliance with genuine user greater than engagement. Travis McGiz promotion to global head of predictions at Crypto. Com signals the company's strategic approach on this emerging.

Starting point is 00:00:30 market, with over 150 million users and extensive experience in regulatory compliance, crypto. Com is positioning prediction markets as a tool for democratized information aggregation rather than pure speculation. In this interview, we explore how centralized platforms are reshaping prediction markets, the technical challenges of building regulated forecasting infrastructure, and whether mainstream adoption will come from crypto-native innovation or institutional grade compliance. Ashan Pondi. Hi, Travis, Congratulations on your promotion to Global Head of Predictions at Crypto. Com, can you walk us through what this role entails and what drew you to prediction markets

Starting point is 00:01:08 specifically, Travis McGee, as Global Head of Predictions at Crypto. Com, I led Crypto. Com's event contracts and prediction markets offering in our plans to continue to expand through new partnerships and into additional jurisdictions. We've seen a significant opportunity emerge in this space and since we launched our first initial sports event contracts in 2024. This is a unique space where I can leverage my expertise in responsible innovation and regulation, similar to my prior leadership role at crypto. Com as we expanded our offering to includes talks and ETF trading. Ashon Pondi, prediction markets have existed for decades, yet they've never reached mainstream adoption. What makes this

Starting point is 00:01:50 moment different and why is crypto? Com betting on this vertical now? Travis McGee. Prediction markets have risen in popularity dramatically for a number of reasons, one of which being that people and consumers are inherently pursuing truth. Today, prediction markets can be more accurate than traditional polling and they have proven that on multiple instances. Additionally, prediction markets have distinct characteristics, such as the incentive for participation in more diverse input sets that enable them to predict events with more accuracy and in turn are a huge engagement attraction. Ashon Pondi, you've been with Crypto.com since the early days of building out the predictions product, what were the biggest technical and regulatory

Starting point is 00:02:30 challenges you faced in launching this offering, especially given the regulatory scrutiny around anything resembling gambling? Travis McGee. From a product perspective, we want our event contracts offering to be naturally part of the crypto. Com app experience, a seamless component to a comprehensive financial markets tool. We work at this every day, starting at the planning phase and continuing through the ongoing life cycle of the product. From a regular perspective, we're committed to responsible innovation. That means we only bring a product or service to market that is in line with market regulations and supported by industry-leading safety and security protocols. Ashan Pondi decentralized prediction markets like Pollymarket have gained

Starting point is 00:03:11 significant traction by operating outside traditional regulatory frameworks. How does crypto-com's approach differ and what advantages does operating within a regulated environment provide to users, Travis McGee. The last few years in the crypto industry have been tremendously exciting with the continued adoption of digital assets. We see so much opportunity in the technological advancements fueling the acceleration of cryptocurrencies and blockchain. For us, we look at areas that we can disrupt and improve to accelerate digital economic growth. We are leaning in on a number of frontiers, one of which is prediction markets. And central to everything we do at crypto, Com is security and compliance. We do not offer a product and service unless it is battle-tested

Starting point is 00:03:55 and in line with market regulations and requirements. This is what has helped make our platform broadly recognized as one of the most trusted providers of prediction market services. Ashan Pondi critics argue that prediction markets on centralized platforms can suffer from liquidity fragmentation and potential conflicts of interest. How does crypto, comm address concerns about market manipulation and ensure fair price discovery, Travis McGee. We use state-of-the-art market surveillance technology and have industry standard connectivity and security requirements, so we are able to detect and prevent risks or manipulation to our markets. Our rulebook is over 300 pages and we conduct market surveillance in real-time

Starting point is 00:04:35 and are able to investigate inappropriate behavior and even fine or expel customers who violate or rules. Congress and the CFTC have empowered us to be a self-regulatory organization and we take that duty seriously. Ashon Pondi, beyond entertainment and speculation, prediction markets are often touted as truth-seeking mechanisms that aggregate collective intelligence. Do you see crypto-coms platform evolving toward more sophisticated use cases like corporate forecasting, risk management, or even policy decisions? Travis McGee. We currently offer event contracts across sports in a broad range of events, covering financials like price of commodities, elections, cultural events like award show winners, and economics like interest or inflation rates. We are eager to further

Starting point is 00:05:21 expand this portfolio within the guidelines of market regulations. Ashan Pondi, the prediction market space is getting crowded from Defy Protocol Sto traditional exchanges adding similar features. What's crypto, comms competitive mode, and how do you plan to differentiate in an increasingly saturated market, Travis McGee. We are building crypto. Com to be the one-stop shop for all of a consumer's financial interests. We want to provide customers a one-app experience, enabling them to educate themselves on products that have proper disclosures on potential profits and losses and to act on any opportunity. However, it may present itself, that financial markets present. Ashan Pondi, looking ahead, what's your vision for prediction markets in the next

Starting point is 00:06:05 three to five years, and where do you see crypto? Com positioned in that landscape, Travis McGee. We see significant opportunity for the growth of prediction markets and event contracts in the U.S. and beyond. Prediction markets and event contracts now have a foothold in mainstream digital engagement and we expect to see these engagements create greater connection to even more real-world events and experiences through a trillion dollar industry. Don't forget to like and share the story. This author is an independent contributor publishing via our business. blogging program. Hacker Noon has reviewed the report for quality, but the claims here and belong to the author. Hashtag DiO thank you for listening to this Hackernoon story, read by

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The Good Tech Companies - Crypto.com Targets Trillion-Dollar Prediction Market Opportunity With Regulatory-First Approach

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