X collaborates with Polymarket for Prediction Markets

• Polymarket will officially partner with X to offer prediction market services.
• X will provide valuable data, technology, and social analytics for Polymarket users.
• Prediction markets continue to expand in areas such as sports, politics, and entertainment.

The domain of sports prediction markets is on the rise. Recently, Elon Musk's social media platform X, which was previously known as Twitter, has partnered with Polymarket, a crypto-based prediction market, to unveil a new integrated product designed to offer data-driven insights and strategic recommendations.

The announcement made on June 6 revealed that Polymarket would incorporate predictions derived from posts on X along with insights from Grok. This merger of data and opinions will provide essential context for Polymarket's forecasting.

This agreement is the inaugural step toward a series of integrations planned between the two companies.

Linda Yaccarino, the CEO of X, stated, 'The prediction market has become a vital source of real-time information for several users on X.'

'The prediction market is now an essential source of up-to-the-minute information for many users of X.' — Linda Yaccarino, CEO of X

What Is Polymarket?

Polymarket is a decentralized prediction platform built on blockchain technology, which debuted in 2020. It holds the title of the world's largest prediction market. Users can acquire Yes/No contracts related to various global events, with prices changing according to market dynamics. It gained significant traction during the 2024 U.S. Presidential Election.

Available markets encompass a diverse array of global events, including politics, cryptocurrency rates, wars, cultural phenomena, and sports.

Users can purchase contracts focusing on game outcomes, series champions, award winners, and more. This operates similarly to traditional sports betting. In fact, the terminology used on the Polymarket website is akin to betting instructions. They suggest, 'Purchase Yes or No shares based on your forecast. Buying shares equates to wagering on the result. The odds fluctuate in real-time based on other traders' betting behavior.' The following step involves 'Placing a Bet'.

Polymarket posted an announcement on their social media channels.

'The forthcoming era of information will not be dictated by the media titans of the 20th century but will instead be shaped by market dynamics. Our collaboration with X heralds a new era of truthfulness online. The future of journalism is being fine-tuned for accuracy, supported by transparency, and grounded in reality.'

'The next generation of information will not be dictated by traditional media giants but rather by market forces. Our collaboration with X signifies a new dawn for truth on the internet. The journalism of tomorrow is set to prioritize accuracy, built on transparency, and firmly anchored in real-world events.' — Polymarket via X.

Despite being involved in numerous U.S.-focused prediction markets, Polymarket is not legally operated within the United States at present. Due to its status as a non-registered exchange, the Commodity Futures Trading Commission (CFTC) fined and barred Polymarket prevented it from offering services to U.S. citizens in 2022.

The CFTC determined that the event market contracts provided by Polymarket, which consist of paired binary options, are classified as swaps, thus falling under its regulatory framework. Consequently, they are only permitted on registered exchanges in compliance with the CEA and CFTC regulations.

Kalshi Deal Falls Through

Recently, just last month, X was reportedly in talks with Kalshi, a regulated exchange and prediction market, to establish a similar partnership.

Interestingly, Kalshi's CEO, Tarek Mansour, publicly stated a partnership with Musk's xAI on social media. However, this announcement was quickly withdrawn a few hours later, and no partnership materialized.

The collaboration between X and Polymarket signifies a broader integration with the X platform itself. Kalshi has been making strides in establishing its prediction markets within the U.S., while Polymarket currently restricts U.S. users but remains accessible in other countries.