X.com and Polymarket: The Surprising Duo
X.com Shifts Allegiance from Kalshi to Polymarket in Aftermath of Musk-Trump Controversy
In a surprising turn of events, media platform X.com has roped in Polymarket as its official prediction market partner. While the announcement came as a shock, recent developments had dulled the surprise after rumors surfaced of a potential partnership between X.com and Kalshi - Polymarket's rival.
Initially, Kalshi, with Donald Trump Jr. on board as a Board member, was set to partner with Elon Musk's social media platform. However, a fallout between the Trump administration and Musk led to realignment.
X.com finally confirmed the news: "We're tying the knot with Polymarket as our official prediction market partner," they announced. Polymarket, in response, excitedly declared: "The future of truth on the internet lies not in the old-school media monoliths but in markets. Our partnership with X marks a new dawn for truth on the web. The newsmaker of tomorrow will be based on transparency, reality, and optimized for truth."
The companies have joined forces and plan to develop dedicated products offering data-driven insights and recommendations. They will combine their data to offer live insights and real-time annotations on market moves, with the help of Grok, an AI chatbot developed by xAI.
Polymarket CEO Shayne Coplan has hailed the partnership and the involvement of Grok and X's real-time input, which will give the company the ability to offer data-driven and contextualized insights to millions of its users.
There had been much speculation about X.com's choice of a prediction market partner even before the White House drama unfolded.
Whispers and Rumors Galore
Although Bloomberg reported a potential deal between X.com and Kalshi, the news had to be retracted due to a lack of confirmation from either party. Fact is, X.com was indeed considering a partnership in this particular segment, but no specific party was selected yet. The partnership with Polymarket, however, could potentially create new challenges for all involved.
Polymarket, unlike Kalshi, is not registered with the Commodity Futures Trading Commission (CFTC), a regulatory body that keeps Kalshi's operations legitimate. As a result, US users cannot legally access the Polymarket platform. This issue is especially relevant amid the ongoing feud between Musk and Trump, with Trump threatening Musk that he could cause him significant harm.
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- The lack of CFTC registration for Polymarket may pose challenges in the potential partnership with X.com, as this regulatory body legitimizes Kalshi's operations, making legal access unavailable for US users on Polymarket.
- Amid the ongoing feud between Musk and Trump, the complications arising from Polymarket's unregistered status with the CFTC could potentially intensify, given Trump's threats to cause Musk significant harm.
