Kalshi’s $40 billion growth story hits tough questions about its trading volume
Summary
Kalshi told the CFTC it will end its volume-based trading incentive program no earlier than Oct. 13, nearly a year before its planned 2027 end. The filing did not explain the decision or connect it to scrutiny of repetitive trades in crypto perpetuals; Kalshi denies wash trading and says market makers’ fixed-size quotes explain the activity. A newer rewards framework allows targeted, time-limited promotions tied to deposits or trading, with individual and lifetime payout caps. It excludes transactions under review for abusive practices and subjects recipients to heightened monitoring. The change comes as Kalshi reports record trading volumes and reportedly discusses a $1 billion funding round at a roughly $40 billion valuation.
