Kalshi vs ProphetX doesn’t seem like a fair comparison, as they are very different platforms in the prediction markets space, but that’s exactly what we will focus on here: how they differ. Read our full comparison below to learn more.
Kalshi vs ProphetX: History and Legality
Kalshi and ProphetX are two different types of prediction market platforms. Kalshi is a CFTC-regulated platform that operates legally in over 40 US states, while ProphetX is a sweepstakes platform that doesn’t require a licence to provide trading services.
ProphetX has filed an application for CFTC approval to become a regulated designated contract market (DCM), but remains a social sports betting exchange until approved.
Both companies were established in 2018. Kalshi was founded by Tarek Mansour and Luana Lopes Lara, and its website launched in 2021. ProphetX was created by Jake Benzaquen and Dean Sisun, and it started as a betting exchange before switching to the sweepstakes model.
Kalshi vs ProphetX - Key Differences
Apart from the CFTC and sweepstakes difference, platforms also differ in the markets they cover. While Kalshi covers a wide range of topics, such as politics, entertainment, sports, culture, finance, and others, ProphetX focuses solely on sports markets.
That means that they cater to different audiences as well, as Kalshi attracts many profiles, and ProphetX caters only to sports enthusiasts and those wishing to try their luck in sports markets.
Let’s look into some other Kalshi vs ProphetX differences.
Kalshi vs ProphetX: Security, Transparency, and Trading Integrity
Both companies run secure platforms where users can safely trade their predictions. Kalshi runs on a cash model, so you need to make a deposit before purchasing your contracts.
As a sweepstakes platform, ProphetX doesn’t require users to deposit funds into their accounts, as they can use Prophet Points to trade instead. Those points are not redeemable for cash prizes, but ProphetX cash you can purchase is, which the company explains when you switch between the two.
Regulation and Availability: Kalshi vs ProphetX
We have already mentioned that Kalshi is a CFTC-regulated prediction market platform that operates in over 40 US states and in other jurisdictions worldwide where it’s not illegal.
ProphetX is a sweepstakes platform. Users can trade contracts using Prophet Points, making it a social prediction markets platform, or use ProphetX cash that they can purchase and later redeem for cash prizes. It is available in states where sweepstakes are legal.
However, this will change if ProphetX becomes CFTC-regulated, since it will then move from the sweepstakes model to become the first all-sports prediction market platform.
Market Coverage and Liquidity: Kalshi vs ProphetX
The ProphetX platform reminds us a bit of a sportsbook with the terms it uses, individual markets for sports matches and events, and the odds it lists. You can even build parlay bets.
US leagues and sports are the most popular, but other leagues and events are also offered, especially major football leagues and popular tennis tournaments.
As a large platform, Kalshi offers more markets and better liquidity, which is something that ProphetX can improve on once it becomes regulated.
Kalshi or ProphetX Fees: Which Is Cheaper?
Both Kalshi and ProphetX charge fees from their users, but in a different way. Kalshi charges a $2 flat fee for bank card withdrawals, and ProphetX takes a 1% fee from each win, or 1% of the net winnings for every winning market.
The question is which model is cheaper for you, Kalshi or ProphetX, or which one better suits your trading habits.
Which Prediction Market Is Better: Kalshi or ProphetX?
While we can’t answer this question for you, we can help you by pointing out who should choose Kalshi and who should choose ProphetX.
If you wish to focus solely on sports without any distractions and get an experience similar to sports betting, ProphetX could be a better option for you. Also, if you don’t wish to invest any money, but trade for fun, ProphetX is the place to be.
If you want a variety of markets, including a large selection of sports options, Kalshi might be a better choice. It also offers more in terms of liquidity and accepts cryptocurrencies that are then converted to fiat.
So, Kalshi vs ProphetX: Which is better? You decide for yourself, but keep in mind that things might change soon at ProphetX.
Key Considerations for Kalshi and ProphetX Users
Is Kalshi better than ProphetX? Some would argue that it is, because of the market diversity it offers and the size of the overall offer. Users focused on sports markets could argue that ProphetX is a better fit for them because it offers only sports markets, so there are no distractions.
However, Kalshi offers a large number of sports markets, but not the sports-betting-like experience you could get with ProphetX, even though its market variety is limited.
Kalshi has been regulated for a long time, while ProphetX is in the process of getting approved by the CFTC. So, if the sweepstakes model is what attracts you, we'll see if ProphetX will keep any of that if it becomes regulated.