Kalshi has clarified that nearly $5 billion in Ether perpetual trades were driven by its liquidity incentive programs, rejecting claims that the activity constituted wash trading, according to CoinTelegraph.
The company emphasized that the high volume of similarly sized trades was part of efforts to enhance market liquidity rather than manipulative practices. This statement comes amid increased scrutiny from regulators such as the CFTC on crypto derivatives platforms.
For Japanese investors closely monitoring Ether and broader crypto derivatives markets, Kalshi's defense highlights ongoing challenges in distinguishing genuine liquidity provision from potential market manipulation in an evolving regulatory landscape.