Alliance co-founder warns Kalshi crypto perps threaten on-chain liquidity
Alliance co-founder Imran Khan warned that Kalshi's newly launched perpetual futures for Ethereum, XRP, and Solana could drain liquidity from on-chain markets. The concern, raised on Saturday, centers on whether regulated off-chain derivatives will pull trading volume and capital away from decentralized crypto exchanges. Kalshi's crypto perpetual push follows its earlier bitcoin perpetual launch and comes as the platform's overall perpetuals volume has already topped $1 billion in its first week. The warning frames a direct tension between CFTC-regulated prediction market venues and decentralized trading infrastructure.
Kalshi must now defend its crypto perpetual expansion against claims it harms DeFi liquidity. Any sustained outflow from decentralized venues could invite regulatory scrutiny or developer-led countermeasures against its onshore model.
Kalshi's crypto perpetual expansion now draws warnings from DeFi operators even as DRW, Wintermute and IMC build prediction-market desks for both Kalshi and Polymarket, tightening the race for institutional and retail flow.