Article Date: December 23, 2024, 12:11h.
Last updated on: December 23, 2024, 12:11h.
Count Crypto.com as the newest entrant into the sports event trading arena with their recent offering.
The cryptocurrency brokerage company has introduced a sports event trading product that allows users to trade their predictions on the outcome of various sports events, including the Super Bowl.
Sports Events Trading offers a unique platform for U.S. users to engage nationally at Crypto.com and in the Crypto.com app,” stated Kris Marszalek, co-founder and CEO of Crypto.com. “This innovative financial product enables users to trade their predictions on the outcome of sports events, showcasing a new concept in the sports industry. We are excited to be the first regulated platform in the U.S. to offer this to our users.
The company has termed this new offering as the first of its kind and will be provided by Crypto.com | Derivatives North America, regulated by the Commodities and Futures Trading Commission (CFTC).
Crypto.com Revolutionizes Sports Event Trading
Sports event trading, also known as exchange betting, has been around for some time and is an alternative to traditional sports betting. It has gained popularity over the years, with various operators like Sporttrade enhancing its appeal.
Exchange trading on sporting events is based on implied probabilities rather than the standard American odds offered by sportsbooks. This approach provides a simpler process and higher payouts to bettors. For instance, wagers on Sporttrade are priced from zero to 100, reflecting the implied probability of winning, with bettors paying accordingly.
Similar to standard derivatives, prices of these contracts, including those from Crypto.com, can fluctuate, allowing bettors to adjust their positions as prices vary.
Crypto.com distinguishes itself by enabling clients to buy contracts using digital currency, converting over 350 cryptocurrencies on its platform to bitcoin or U.S. dollars for the purchase of sports event trading contracts. Winnings from successful bets will be disbursed in dollars.
While some sportsbook operators have expressed interest in accepting crypto wagers and payouts, regulatory bodies have yet to sanction such activities.
Booming Event Trading Market
Amidst the growing enthusiasm for political betting, the event trading market is thriving, attracting more financial services firms like Crypto.com, which sees opportunities in merging event trading with sports.
Propelled in part by the success of companies like Kalshi and Sporttrade, brokerage firms are exploring the event trading market as clients seek more diverse wagering options beyond traditional fixed odds sports betting.
Regarding Crypto.com’s Super Bowl contracts, clients can purchase contracts for “yes” or “no” outcomes for the 19 NFL teams still in the playoffs. Currently, the Detroit Lions and Kansas City Chiefs hold a 22% implied probability of winning the championship, with a “yes” contract costing $22.25 for the Lions and $21.75 for the Chiefs.