Crypto.com Hires Experts to Trade against Customers
Singapore-based Crypto.com is looking to hire a new employee to work on a market-making team for sports prediction markets. In other words, this employee will face off against customers on the company’s prediction market exchange. On this premise, the cryptocurrency exchange has published a job listing to fill the position.
Quant Trader to Join Crypto.com’s Internal Market Making Team
Crypto.com has posted a job listing for a “quant trader” who will join its internal market-making team for sports prediction markets, according to a Bloomberg report.
This individual will buy and sell financial contracts tied to the outcome of sports games. This team will effectively trade on the exchange, potentially taking the opposing side of customer bets.
One of the job descriptions for this position is to maximize profits while carefully managing risks from trading activities. He would also be responsible for systematically providing liquidity and analyzing data to identify trading opportunities.
Essentially, the quant trader will operate as an in-house trading desk.
Crypto.com says it gives market makers a 3-second advantage window on sports markets, so there would be no need for other participants to worry.
Controversy Surrounding Prediction Markets
This comes amid controversy about such an in-house trading practice in the industry.
As it stands, critics are saying that it creates conflicts of interest with customers as it makes the platform resemble a traditional sportsbook rather than a neutral exchange where two customers trade with each other.
For the longest time, prediction markets have tried to differentiate themselves from the model of traditional sportsbooks, which set the odds and profit when customers lose.
Crypto.com is attempting to stand out by claiming that the company does not rely on proprietary trading as a source of revenue. It is also stating that its internal market maker has no pre-access to proprietary data or customer order flow.
This controversy has not stopped newbies from entering the ecosystem. Recently, Coinbase also entered the prediction market niche, as it developed a website for this operation backed by Kalshi.
It’s worth noting that this was about one month after Kalshi raised $300 million in a Series D funding at a $5 billion valuation, to expand its prediction market platform to over 140 countries.
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