Prediction Markets Stir Controversy

Kalshi, a prediction market platform, made headlines in May when the CFTC dropped its appeal against it. This allowed Kalshi to operate in all 50 U.S. states, sparking debates about whether it’s gambling or trading. CEO Tarek Mansour argues it’s like financial markets, but critics call it betting in disguise. The platform lets users wager on outcomes like elections or sports, blending finance with speculation. This trend is drawing younger traders who see it as both fun and profitable.

Memecoins Fuel Risky Trades

Memecoins are shaking up trading. NPR’s Planet Money reported in March that coins inspired by figures like Moo Deng the pygmy hippo are soaring in value. These volatile assets attract traders chasing quick gains. Social media hype, especially on X, drives their popularity. However, losses can be steep, with platforms profiting regardless of outcomes. This gamified trading style appeals to Gen Z, who treat it like a high-stakes game, often sharing wins and losses online.

Opinion Trading Apps Raise Concerns

Apps like MPL Opinio and Probo are booming in India, with over 50 million users. A Mint report from March warned they resemble gambling platforms. Users bet on events like crypto prices, lured by influencer endorsements. Many lose big, chasing bigger bets to recover. These apps mimic stock market trading but lack regulation, raising red flags. Consumer watchdogs are pushing for stricter oversight to protect young traders from financial ruin.