Crypto Exchanges

Story: XO Market Takes on Polymarket and Kalshi With User-Created Prediction Bets

By Steven Anderson

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Vault Product Targets Market Makers. XO Market plans to roll out a vault product aimed at opening up market making to regular users.

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Investor Backing Signals Confidence. 20VC, Picus Capital, and Coinbase Ventures all put money into XO Market.

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User-Generated Markets Shift the Model. Most prediction platforms work like sportsbooks. Operators pick the events, set the lines, and…

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XO Market wants users to build their own prediction markets. The platform just locked backing from 20VC, Picus Capital, and Coinbase Ventures, and it's going after Polymarket and…

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The bet here is pretty simple. Most prediction platforms give you a menu of markets someone else already set up. You pick, you bet, you wait.

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No launch date yet. The company didn't say when the vault goes live or what the fee structure looks like.

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The vault is supposed to lower the barrier. Right now, if you want to make markets on Polymarket or Kalshi, you need serious capital and a decent grasp of odds-making.

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20VC, Picus Capital, and Coinbase Ventures all put money into XO Market. That's not just capital—it's strategic weight.

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The backing matters because prediction markets sit in a regulatory gray zone. Kalshi fought the CFTC for years to get approval. Polymarket operates offshore and faced a $1.

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Investors don't usually pile into prediction market startups unless they see a clear path to scale.

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More context: CFTC Takes Wisconsin to Court in Fifth Prediction Market Turf War

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The risk is obvious. User-generated markets could get weird, offensive, or legally problematic fast.

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But the upside is big. Crypto communities want to bet on niche events that mainstream platforms won't touch—protocol upgrade dates, token unlock schedules, DAO governance votes.

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The model also taps into the creator economy trend. If users can profit from creating popular markets, not just from betting, that's a new revenue stream.

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Prediction markets have struggled with adoption for years. Intrade shut down in 2013 after regulatory pressure. PredictIt operates under a no-action letter with strict limits.

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