Kalshi denies wash trading allegations, cites algorithm for volume discrepancy

Prediction market platform Kalshi has been accused of reporting fake trading volume for its ETH perpetual futures, with analysts pointing to a 174x ratio between volume and open interest, and a high concentration of identical $5,500 orders. Kalshi's product lead refuted the claims, explaining that the platform calculates volume based on maximum potential payout rather than actual capital deployed. The company also emphasized its regulatory status as a CFTC-designated contract market, which requires all incentive programs to be publicly disclosed, distinguishing it from offshore exchanges.