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Spotify Deletes 500K Streams Over Prediction Market Bets
2 Jul
Summary
- Spotify removed over 500,000 streams of Malcolm Todd's song.
- Streams surged after suspicious bets on prediction market Kalshi.
- This incident raises concerns about market manipulation.
Spotify has removed more than 500,000 streams of Malcolm Todd's song "Earrings," which had unexpectedly reached number one on its US chart. This action followed an investigation into a significant surge in streams that coincided with a rise in suspicious wagers on the prediction market Kalshi.
Traders on Kalshi had priced a low probability for Todd's song to hit number one before the surge. After the streams increased dramatically, those who bet on this outcome saw substantial returns. Spotify believes the manipulated streams were bot-initiated, and has stated it does not pay royalties for such activity.
This incident, first highlighted by a Kalshi trader on X, underscores rising concerns about prediction markets like Kalshi and Polymarket being used for insider trading and market manipulation. Similar incidents have involved other prediction markets and governmental data.
Spotify has requested Kalshi remove its logo, and Kalshi has added a disclaimer. Both platforms are communicating regarding the matter.
