Kalshi kills liquidity rewards as wash trading claims swirl
Kalshi says wash trading does not happen on its platform & blames fast traders hitting market maker quotes.
The hit
Kalshi is ending its Volume Incentive Program no earlier than 13 October, according to a filing with the CFTC. The scheme, launched in March 2023, paid traders from reward pools for boosting liquidity on the platform’s central limit order book.
Why it matters
The decision comes as the CFTC reportedly examines Kalshi’s trades, following allegations that repeated $5,500 trades inflated ether perpetual futures volume. Kalshi denies wash trading occurs on its platform & says it is not under investigation, blaming the pattern on market makers’ fixed quotes being hit by faster traders.
The record
| Programme end date | No earlier than 13 October (CFTC filing) |
|---|---|
| Programme launch | March 2023 |
| Alleged wash trading volume | Over $5bn in ETH perps trades in past month (Wall Street Journal) |
| ETH perps daily volume vs open interest | $539m 24-hour volume against $3.1m open interest (X account Beni) |
| Kalshi September volume | $52.98bn as of 29 September, an all-time high (The Block) |
| Reported funding talks | About $1bn at a $40bn valuation (Reuters) |
What happens next
Watch for the programme’s actual termination date after 13 October & any update from the CFTC on its reported examination of Kalshi’s trading activity.
Sources: Kalshi to end liquidity incentive program amid wash trading allegations
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