Gemini Prepares to Offer Prediction Market Contracts: Bloomberg
Cryptocurrency exchange Gemini, founded by the Winklevoss twins, plans to enter the growing prediction market sector, as reported by Bloomberg. Prediction markets, popularized during the 2024 U.S. election with over $8 billion in bets, have attracted interest from various tech and financial firms. Gemini's move would require approval from the U.S. Commodity Futures Trading Commission (CFTC), with regulatory clearance potentially taking months. The exchange, listed on Nasdaq since September, is aiming to compete in a sector where platforms like Polymarket and Kalshi have gained prominence.
Gemini's Move into Prediction Markets
Cryptocurrency exchange Gemini (GEMI) is planning to enter the prediction market sector, according to Bloomberg's report on Tuesday. The company, founded by Cameron and Tyler Winklevoss, is reportedly working towards unveiling new products in this area as quickly as possible.
Public Listing and Market Expansion
After becoming a publicly traded company on the Nasdaq Global Select Market in September, Gemini is setting its sights on an industry that has seen significant growth over the past year. The prediction market space is becoming increasingly attractive to leading firms and has gained momentum due to its potential scale and profitability.
Rising Influence of Prediction Markets
Prominent platforms like Polymarket and Kalshi gained widespread attention during the 2024 U.S. election campaign. Over $8 billion in bets were placed on Polymarket's platform, highlighting the sector's potential. Their success has prompted various companies in the financial, technology, and media industries to explore entries into the prediction market.
Trump Media's Strategy
Trump Media & Technology Group (DJT), the company behind President Donald Trump’s social platform Truth Social, announced a partnership with Crypto.com to roll out prediction markets. This signifies a growing interest in prediction platforms from influential organizations.
Regulatory Oversight and Challenges
Prediction market contracts are classified as a form of derivatives, as their value depends on the outcome of future events. For Gemini to offer such contracts, it will require approval from the U.S. Commodity Future Trading Commission (CFTC), a process that can take several months.
Gemini's Response
At the time of the report, Gemini had not responded to CoinDesk's request for comment regarding its plans for the prediction market. The company's approach reflects the broader trend of exchanges seeking to diversify their offerings and capitalize on emerging opportunities.