Prediction markets Polymarket and Kalshi are competing to recruit as many crypto influencers as possible, paying them to display affiliate badges on X in a PR battle that has been dubbed the “Kalshi vs Polymarket KOL Wars.”
Both firms are paying undisclosed sums to various accounts, with followers ranging from the hundreds to the hundreds of thousands, to promote their markets to their respective audiences on X and display the affiliate badge.
Crypto streamer Gainzy announced he was joining Polymarket last month, while @katexbt joined Kalshi this week.
Another member of the Kalshi team noted last month, “Deploying more Kalshi badges — steady lads,” while some users have begged for the chance to represent Kalshi.
The marketing push follows a recent dramatic drop in app downloads across both platforms and may well be an attempt to hook newcomers across the crypto community.
Prediction market competition leads to poaching
X user and crypto streamer, “Eddie,” accepted a Kalshi affiliate deal in September, but over three weeks later, he was poached by Polymarket and his account is now sporting the rival badge.
One crypto user joked Eddie might even be a “double agent.”
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Another influencer to switch sides is “Utopia Sports,” who is currently brandishing a Polymarket badge after claiming their Kalshi partnership turned sour.
The account claims their badge was removed three weeks into the partnership after they wanted to renegotiate the terms of Kalshi’s “unclear” agreement.
According to messages shared by Utopia Sports, Kalshi wanted the money paid to Utopia Sports back and told them, “If we let every partner cut off their contract while keeping the money, we would go bankrupt.”
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When they wouldn’t pay Kalshi back, Utopia Sports claims Kalshi then tried to “bribe” them with a $100 bonus. Utopia Sport argues that since they didn’t sign a written contract, they’re not obliged to pay them back, despite agreeing to the terms over direct message.
Another crypto influencer who’s made the swap and is outright joining Kalshi’s product development team is “IcoBeast.eth.”
They previously worked for Proof of Play and stepped down from the role last month, but onlookers noticed how the new role looks like a prediction market poaching.
Kalshi beats Polymarket in volume
Dune analytics from the user “dunedata” show that Kalshi’s notional volume for the week starting September 29 hit $956 million. Polymarket’s notional volume for that week, however, was just $464 million.
Polymarket has just announced that the parent company of the New York Stock Exchange, the Intercontinental Exchange, will be investing $2 billion into the firm.
This investment would leave the platform with a $9 billion valuation. In comparison, Kalshi was valued at $2 billion in June.
This is just as Polymarket is about to re-enter the American market for the first time since it settled with the Commodities Futures Trading Commission in 2022.
This investment, as well as input from Donald Trump Jr, who is an advisor for both firms, will likely aid its reentry.
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Source: https://protos.com/the-kalshi-vs-polymarket-kol-wars-have-begun/
