- A trading bot repeatedly buying and selling $1 contracts on Kalshi‘s Zohran Mamdani prediction market every four seconds for nearly two months has suddenly stopped trading amid widespread wash trading allegations.
- Pseudonymous quant analyst Beni flagged that Kalshi‘s 24-hour ether perpetual volume hit $539 million while open interest stood at just $3.1 million, with uniform $5,500 trades accounting for 58% of ETH perp volume over four days.
- Kalshi published a formal rebuttal article claiming “wash trading rumors are false,” though its crypto lead IcoBeast.eth later apologized for personally attacking the analyst who raised the concerns.
- Prediction market firm Resolve claimed it profited roughly $30 per day by trading against the metronome-like bot, while some observers suggested the activity might stem from a bug or volume-farming strategy.
Pseudonymous analyst Beni sparked wash trading allegations against Kalshi last weekend, claiming the platform’s 24-hour ether perpetual volume reached $539 million while open interest was only $3.1 million. Beni further flagged a series of uniform $5,500 trades that supposedly represented 58% of Kalshi‘s ETH perp volume across four days, according to a post.
Kalshi‘s crypto lead IcoBeast.eth aggressively rebuffed the claims, but later apologized for personal attacks. The platform subsequently published an article attempting to debunk the argument and claiming “wash trading rumors are false.”
Meanwhile, a distinct bot was reportedly trading the 2028 Democratic Presidential Nominee market on Kalshi, specifically on Zohran Mamdani’s ticker. Mamdani cannot be the nominee because he was not born in the USA. Prediction market analyst TickerTracker compared the bot’s activity to a metronome.
The bot bought shares for two-tenths of a cent before selling them for one-tenth of a cent repeatedly every four seconds across nearly two months. Today, analysts noted that it stopped trading after the continuous back-and-forth trades concluded.
Prediction market tool firm Resolve claimed to have made around $30 daily by counter-trading the metronome bot. Some users suggested the trades might be a bug, while others suggested the bot could be “someone farming volume for a higher rate limit tier.” TickerTracker noted that notional volume within prediction markets can often be inflated and that automated trading is ordinary, adding there might be a simpler explanation for the anomalies.
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