📊 Kalshi drops Donald Trump Jr. as adviser over Polymarket stake
Prediction-market company Kalshi has cut ties with adviser Donald Trump Jr. because his investment firm led a large funding round for rival Polymarket.
⚠️ This is news, not financial or investment advice.
The mystery
Prediction markets, where people bet on real-world outcomes, have become one of the hottest corners of finance and crypto. When a high-profile adviser's firm backs the main competitor, a split was perhaps only a matter of time.
The answer
According to a Reuters report, Kalshi and Donald Trump Jr. have parted ways. A Kalshi spokesperson said both sides agreed to end the arrangement because of his firm's sizable bet on a competitor. Talks on the split started in August, when 1789 Capital, the venture firm run by Trump Jr., led Polymarket's $1 billion funding round, which would value Polymarket at $21 billion; 1789 Capital was expected to put in about $300 million. He had been advising Kalshi on strategy since January 2025 and received equity the Financial Times reported was worth roughly $300,000 then. Kalshi said politics played no part in the decision. However, Reuters, citing two unnamed sources, said some staff had raised concerns over what the Democrats winning both chambers of Congress in the midterms could mean for the company. This is news, not investment advice.
Now think about this
Should people with close political ties be allowed to advise or invest in platforms where users bet on political outcomes?
