Crypto.com Hires Traders to Bet Against Customers

Singapore-based Crypto.com has advertised for a quant trader to join its internal market-making team for sports prediction markets. This individual will be responsible for trading financial contracts linked to sports game outcomes, effectively taking the opposite side of customer wagers to maximize profits while managing risk.

The company's practice of having in-house traders operate against customers has sparked controversy. Critics argue it creates conflicts of interest, making the platform resemble a traditional sportsbook rather than a neutral trading venue. This is a departure from how prediction markets aim to distinguish themselves from sportsbooks that profit from customer losses.

Crypto.com asserts that proprietary trading is not a primary revenue source and that its market makers lack access to proprietary data or customer order flow. This development follows Coinbase's recent entry into the prediction market space, further signaling growth in this area of the crypto ecosystem.