Kalshi, a prediction markets operator, has responded to reports of unusual trading activity in its Ether perpetual futures market, which accounted for nearly $5 billion in trades. The company attributes this activity to its liquidity incentive programs and denies any allegations of wash trading.
Despite a report from The Wall Street Journal suggesting that the Commodity Futures Trading Commission (CFTC) is examining a pattern of rapid trades, Kalshi stated they have not been contacted by the regulator and do not believe there is any formal investigation underway.
Kalshi's head of communications, Elisabeth Diana, described the claims as "rumors seeded by competitors," emphasizing that the trading patterns are typical of liquidity programs found in financial markets.
The trades, which were clustered around $5,500 each, are part of Kalshi's efforts to encourage market makers to provide liquidity. The company has reported significant growth in its perpetual futures business since launching in May, with trading volumes surpassing $1 billion shortly after.
Kalshi clarified that the fixed trade sizes are indicative of market makers providing resting orders, allowing numerous traders to engage without suggesting any illicit trading practices. They argue that the activity reflects genuine market engagement rather than wash trading.