Recent allegations have surfaced against Kalshi, a competitor of Polymarket, accusing it of orchestrating a smear campaign against Polymarket’s founder, Shayne Coplan. This situation has gained attention following an FBI raid on Coplan’s residence, which is part of a broader investigation into Polymarket’s operations.
Key Allegations Against Kalshi
- Funding Negative Campaigns: Kalshi is accused of paying social media influencers to disseminate negative narratives about Coplan and Polymarket. Screenshots show influencers discussing their paid partnerships with Kalshi to promote anti-polymarket content.
- High-Profile Involvement: Notable figures, including former NFL player Antonio Brown and journalist Elijah Schaffer, have allegedly been involved in this campaign. Schaffer claimed he was offered $3,500 to write a disparaging piece about Polymarket
- Context of the FBI Raid: The FBI raid on Coplan’s home on November 13 is linked to a Department of Justice investigation into Polymarket’s compliance with U.S. regulations. The timing of the smear campaign has raised questions about Kalshi’s motives.
Broader Implications
The allegations come at a time when both companies are navigating complex regulatory environments in the prediction market space. Polymarket has faced scrutiny for potentially allowing U.S. users to place bets on its platform, leading to a previous settlement with the Commodity Futures Trading Commission (CFTC) and a $1.4 million fine. Meanwhile, Kalshi has recently achieved legal standing to operate in the U.S., which may have intensified its competitive tactics against Polymarket.As the situation unfolds, it highlights the intense rivalry in the prediction market industry and raises concerns about ethical practices among competitors.
