Underdog and Crypto.com unveil first prediction market exchange

Crypto.com | Derivatives North America (CDNA) and Underdog have partnered to introduce the first integrated prediction market exchange available via the Underdog app.

Through this partnership, the Underdog app looks to offer users a federally compliant platform to forecast sports results.

With real-time price updates, the new feature lets American sports fans make predictions on the NFL, NBA, MLB, college football, and more.

CDNA event contracts, which are powered by Underdog’s in-house technology, provide an authorised way to take part in prediction markets, particularly in states where traditional sports betting is still illegal.

The joint platform is particularly noteworthy because it provides access to 16 US states, including important markets like Texas and California, where sportsbook regulations are still stringent. The companies also state that the platform operates lawfully under the Commodity Futures Trading Commission’s (CFTC) supervision.

Jeremy Levine, Founder and CEO of Underdog, commented: “Prediction markets are one of the most exciting developments we’ve seen in a long time. While still new and evolving, one thing is clear—the future of prediction markets is going to be about sports—and no one does sports better than Underdog.”

The Underdog app now combines prediction markets, sportsbook lines, and fantasy competitions. Instead of depending on bookmaker odds, users can trade live contracts that represent their expectations regarding game outcomes.

Travis McGhee, Managing Director at Crypto.com, added: “We were the first to offer sports events contracts, and our technology partnership with Underdog will provide more access to CDNA’s innovative offerings.”

According to Citizens Gaming analyst Jordan Bender’s projections, sports event contracts could bring in $555m (£410m) by 2025 as the sector expands in tandem with the $16bn (£11bn) market for traditional sports betting.

This action strengthens Underdog’s position as the sole provider of sportsbook betting, fantasy sports, and prediction markets in the United States, emphasising player protection and responsible gaming.