Tarek Mansour, CEO of Kalshi, said insider trading is easier to detect in prediction markets.
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Kalshi's CEO said insider trading poses a bigger threat to the stock market than to prediction markets.In an interview with lawyer Max Raskin, published in the Washington Post on Sunday, Kalshi CEO Tarek Mansour talked about the biggest criticism of prediction markets — that it facilitates insider trading.He said detecting insider trading in the traditional stock market is much harder than in prediction markets."The stock market is hard because you may have a piece of information, like a certain product is going to be released, and then you buy the stock. It's very broad," Mansour said to Raskin.But in prediction markets, he said bad actors have a piece of information, such as "a certain product is going to be released," and they place money on event contracts betting that the product will be released."It's very direct. It's very noiseless," he said of insider trading on prediction markets.Talking about former New York Rep. George Santos being accused of insider trading on Kalshi, Mansour said that "there will be fraudsters in any system," but Kalshi is working on catching them "super fast."
