Mark Zuckerberg ordered Meta staff to develop moneyless prediction market: NYT

Meta CEO Mark Zuckerberg has reportedly directed his staff to create a prediction markets mobile app called “Arena” in what could become a challenge to platforms like Kalshi and Polymarket.

According to a Tuesday New York Times report citing two employees with knowledge of the matter, Zuckerberg ordered the development of the prediction markets app that would allow users to place wagers using a points system rather than money. The app will reportedly function independently of Meta’s existing platforms, including Facebook and Instagram.

The news outlet said insiders described the effort as experimental but a top priority for the company. If launched, it could challenge Kalshi’s and Polymarket’s market share for prediction markets, with Meta reporting its apps drew in 3.56 billion users daily as of March.

Meta has previously attempted to launch products with potential impacts on the crypto and blockchain industry, including its planned Libra stablecoin in 2019 that was later rebranded to Diem and dropped in 2022. In April, the company rolled out USDC payouts for certain Facebook creators in Colombia and the Philippines, with some US lawmakers expressing concerns about Meta’s US plans for stablecoins.

Related: Republican lawmaker proposes prediction markets insider trading ban, not including White House officials

Meta reportedly planned to cut 10% of its staff in April amid the company pivoting to artificial intelligence, a move expected to affect about 8,000 people.

Source: Kalshi

Prediction markets still under scrutiny in US

While US regulators like the Commodity Futures Trading Commission (CFTC) remain engaged in legal battles with several state authorities over prediction markets, lawmakers are also considering legislation to address issues like insider trading and profiting from nonpublic information while in office.

Some of lawmakers’ concerns stemmed from a soldier allegedly making more than $400,000 on a Polymarket event contract related to the capture of Venezuela President Nicolás Maduro, removed by US forces in January to face a criminal trial in New York City. The soldier, Gannon Ken Van Dyke, is scheduled to go to trial in December.

Magazine: Japanese pension fund tips 1% in crypto, G7 urges action on NK hackers: Asia Express