Trader alleges wash trading on Kalshi's ETH perpetuals market amid 174x open interest-to-volume ratio.
DeFi & Yields ·
A trader has accused Kalshi of wash trading on its Ethereum perpetual futures market, citing an open interest-to-volume ratio of 174x. Kalshi's cryptocurrency lead disputed the allegation, according to posts on social media.
Wash trading—the simultaneous or near-simultaneous buying and selling of the same asset to inflate volume without genuine price discovery—is a practice regulators typically scrutinize on derivatives exchanges. An open interest-to-volume ratio of 174x suggests that outstanding contract positions far exceed daily trading volume, a metric that can flag potential manipulation concerns or liquidity constraints on a venue.
The exact nature of the dispute, the specific contract period referenced, and the basis for Kalshi's rebuttal remain unclear from available accounts. The allegation underscores ongoing regulatory attention to prediction markets and crypto derivatives platforms; Kalshi operates as a CFTC-designated contract market and faces heightened scrutiny alongside competitors like Polymarket and Hyperliquid.