Underdog and Crypto.com have announced a groundbreaking collaboration to bring sports prediction markets to fans across the United States. Through the widely used Underdog app, users can now buy and sell contracts tied to the outcomes of major sporting events, powered by blockchain technology and federally regulated derivatives markets.
This marks the first time a major sports gaming operator has integrated a prediction market exchange directly into its consumer platform. Underdog, already one of the fastest-growing names in fantasy sports and betting, is pushing the industry forward by giving fans a new, interactive way to engage with their favorite teams and leagues.
As noted, the partnership will allow real-time prediction markets for the NFL, college football, NBA, MLB, and more. Unlike traditional sportsbooks, which rely on fixed odds, prediction markets function like commodity trading: prices fluctuate dynamically based on supply and demand. This model gives fans a more fluid, market-driven way to express their views and profit from their insights into the game.
The Workings ff Prediction Markets
Users can exchange event contracts linked to particular sports results on prediction markets. As players purchase and sell, prices fluctuate in real time. This establishes a consensus within the market regarding the probability of an event, such as the result of a football match or the performance of a certain player.
Until the sporting event is over, users can trade these contracts can providing fans with a fresh and engaging platform to voice their thoughts and possibly make money off of their sports expertise.
The backend infrastructure is possible by Crypto.com’s affiliate CDNA, which is subject to U.S. Commodity Futures Trading Commission (CFTC) regulation. This makes the collaboration one of the first federally compliant prediction market operators in sports gaming.
It also guarantees the security and compliance of the contracts supplied. Crypto.com’s Managing Director and Global Head of Capital Markets, Travis McGhee, highlighted how the collaboration may broaden the market for CDNA’s cutting-edge products.
Underdog and Crypto.com have pledged to maintain the same standards used in conventional fantasy and sportsbook products, underscoring the significance of responsible gaming and consumer safety. The businesses have gaming licenses in several jurisdictions and plan to extend these regulations to prediction market products, further demonstrating their dedication to fair and safe play.
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