Paradigm: Crypto Needs Prediction Markets
Paradigm, a firm founded by Coinbase co-founder Fred Ehrsam, is providing support for the prediction market platform Kalshi in its dispute with a US regulatory agency, according to a recent court filing.
This agency had issued an order in September disapproving of Kalshi’s contract that allowed users to bet on which party would control the US Congress in the next term, calling it an activity that violated state law.
In response, Kalshi filed a lawsuit against the regulator, arguing that they overstepped their authority. While Kalshi is not a cryptocurrency company, Paradigm felt compelled to get involved in the case due to their belief in the potential of prediction markets as a revolutionary use case for crypto.
In a blog post on Monday, the firm stated that political events are of great importance to crypto companies, as they can shape future regulations for the industry.
