Concerns Raised Over Kalshi’s Impact on On-Chain Liquidity
- Kalshi launched perpetual futures for Ethereum, XRP, and Solana after receiving approval from the CFTC.
- The Ethereum perpetual futures were introduced on June 4, followed by XRP and Solana on June 10.
- Imran Khan, co-founder of Alliance, warned that these products could divert liquidity from decentralized platforms like Hyperliquid and Polymarket.
- Khan emphasized that off-chain trading may hinder the composability of liquidity within the broader DeFi ecosystem.
- Kalshi also plans to launch futures for Stellar (XLM), Dogecoin (DOGE), Shiba Inu (SHIB), and Hedera (HBAR).
Khan’s remarks suggest that while Kalshi’s offerings may attract users, they could ultimately reduce on-chain activity critical for DeFi development. The concern is that as liquidity moves off-chain, it becomes less integrated with decentralized applications.
Khan believes that every new product from Kalshi pulls trading liquidity off-chain, which could affect the overall health of the crypto ecosystem as seen with recent launches like Ethereum perpetuals on June 4. (Source)
