- crypto.com launched a new standalone prediction markets platform named OG, which will offer CFTC-regulated sports event contracts and margin trading.
- The company, which claims a 40x weekly growth in its prediction market business, will have its Chief Legal Officer, Nick Lundgren, serve as OG’s CEO.
- Multiple state regulators, including in Nevada, Connecticut, and New York, have initiated enforcement actions against platforms like Crypto.com, Polymarket, and Kalshi for allegedly offering unlicensed sports betting.
- OG is launching with early user rewards and plans a VIP program leveraging Crypto.com‘s major sports partnerships.
Crypto.com rolled out a new standalone prediction platform called OG on Tuesday, timing its launch just ahead of the Super Bowl. This move comes as the exchange and other prediction market providers face growing legal pressure from state regulators across the U.S.
The platform, operated through its derivatives affiliate Crypto.com | Derivatives North America (CDNA), will feature CFTC-regulated sports contracts alongside financial and entertainment markets, according to a statement. CEO Kris Marszalek cited “40x weekly growth in our prediction market business over the last six months” as the reason for the dedicated platform.
Consequently, OG plans to introduce margin trading, potentially making it the first prediction platform with such features. It will also offer up to $500 in rewards for its first million users and a VIP program connected to Crypto.com‘s sports partnerships.
However, the sector faces significant regulatory headwinds. States including Connecticut, Tennessee, Michigan, and Illinois have issued cease-and-desist orders to Kalshi, Polymarket, Crypto.com, and Robinhood. Nevada regulators have filed actions against Coinbase Financial Markets and secured a temporary restraining order against Polymarket.
Meanwhile, New York Attorney General Letitia James issued a consumer alert on Sunday warning that these platforms lack proper oversight. Crypto.com is currently appealing a federal court decision in Nevada that denied its request to block state enforcement against its event contracts.
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