Allegations of Inflated Trading Volumes at Kalshi
- Former analyst Beni accused Kalshi of inflating trading volumes for its Ethereum perpetual futures, claiming a daily volume of $538.6 million against open interest of $3.1 million.
- Kalshi’s reported monthly notional volume reached approximately $40 billion in August, a significant increase from $874 million the previous year.
- Beni noted that trades around $5,500 constituted between 48% and 58% of ETH-PERP volume on certain days.
- Kalshi’s liquidity incentive program offers reduced fees for eligible participants, which Beni argued could facilitate volume churning.
- The platform accounted for nearly 79% of total prediction-market volume tracked in August.
The allegations arise amid rapid growth in Kalshi’s trading activity, with its notional volume surging significantly over the past year. The company disputes Beni’s claims, stating that his analysis conflates different market metrics and does not indicate wash trading.
Despite the controversy, Kalshi’s monthly trading volume reached about $40 billion, highlighting a dramatic rise in its market presence and activity levels this year.
