Coinbase Global is getting into prediction markets in a bid to become a one-stop exchange for Americans’ trading needs, the latest sign that tech platforms offering wagers on real-world events are finding their way into every corner of Wall Street. ... The company has struck a partnership with prediction-markets specialist Kalshi that will allow Coinbase to trade on the outcomes of sports games, elections and economic indicators, using the yes-or-no bets that have come to define prediction markets

Coinbase the EVERYTHING EXCHANGE

Kalshi recently raised $1 billion from venture-capital firms, including Sequoia and Andreessen Horowitz, at a $11 billion valuation. Meanwhile, Polymarket struck a deal with New York Stock Exchange owner Intercontinental Exchange, which said it would invest up to $2 billion in the crypto-based prediction market, giving it a valuation of roughly $8 billion.

Critics argue that prediction markets are a high-risk—and lightly regulated—form of gambling that is susceptible to insider trading and market manipulation. The financial incentives have sometimes fueled gambling addiction and encouraged users to bet on sensitive or unethical topics. (#1343766)