Spotify Challenges Kalshi, Polymarket Over Stream Manipulation Tied to Prediction Market Bets

53 mins ago

Managing Editor (News)

Expertise : Crypto, Stocks, Tokenization, AI, Prediction Markets, Crypto Regulation

Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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an image of Spotify, Kalshi, and Polymarket logos

Highlights

Spotify has asked Kalshi and Polymarket to remove its logo from their platforms.
It also asked that them to clarify that they do not have any existing partnership.
This follows a scandal over supposed artificial streams which were tied to a prediction market on Kalshi.

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Music streaming platform Spotify has reached out to Kalshi and Polymarket, requesting that they remove its logo from their platforms. This follows a scandal involving artificial streams used to settle a prediction market on Kalshi.

Spotify Request Removal of Logo From Kalshi and Polymarket

According to a Bloomberg report, the music streaming platform has asked Kalshi and Polymarket to remove its logo and clarify that neither has a partnership with it. This comes after the company identified manipulation of music rankings tied to prediction markets.

Spotify reportedly identified and removed over 500,000 artificial streams that had made Malcolm Todd’s song “Earrings” one of the most popular on its charts. Kalshi notably settled a prediction market based on these artificial streams. The market in question was for the most frequently streamed Spotify song in the U.S. for last month.

This comes amid increased scrutiny of prediction markets, with concerns of market manipulation and insider trading. As CoinGape reported, prediction market Polymarket is facing a broad CFTC probe amid allegations that the platform paid online creators to create fake bets and winnings.

Meanwhile, state regulators continue to crack down on these prediction markets, claiming that they operate as unlicensed sports betting platforms. At the same time, the CFTC has sued several states to defend its exclusive jurisdiction over the platforms.

Top Kalshi Trader Calls Out Kalshi

Top Kalshi trader Caleb Davies called out the prediction market platform for settling the market based on artificial streams, despite urging them to investigate, as there were many plausible reasons Malcolm Todd’s timely surge on Spotify was not due to artificial boosting.

Kalshi did pay out the market based on fraudulent results right after sending me an email stating that there are many plausible reasons that Malcolm Todd’s timely surge was not due to artificial boosting. This is, of course, total bullshit. pic.twitter.com/vnbFCnfzJN

— Gaeten Dugas (@GaetenD) July 1, 2026

The trader, who estimates to have made over $1 million on Kalshi, accused the prediction market platform of being well aware of the fraud taking place in the Spotify market. “Yet they continue to provide liquidity rewards, including in one of the targeted strikes. Is it so important to Kalshi to collect fees that they provide an incentive in fraudulent markets?” he said.

It is worth noting that the top prediction market platform, Polymarket, also offers Spotify markets. This explains why the streaming platform reached out to both prediction markets, as these markets may incentivize traders to artificially boost the streams in a bid to win their bets.

Amid this development, the CFTC is proposing new rules for prediction markets to address concerns about insider trading and market manipulation. The regulator has already requested comment on these proposed rules, with a deadline of July 31.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.