Spredd Markets @spreddai is the newest entry into the burgeoning sports forecast market. And this is a site that isn’t entering the game quietly. North Carolina-based Spredd Markets is making bold predictions of its own power, citing the site as the future of prediction markets. Here is what they tell about themselves on X: Spredd Markets is decentralized forecasting powered by smart contracts. Predict, rank, and earn weekly.
At Spredd Markets, the proclamation is that this is the first skill-based prediction protocol. It claims to be redefining how it forecasts future events. The site is built natively on the Base blockchain and is powered by $SPREDD, a @virtuals_io token.
Let’s take a look into what Spredd Markets is all about and what the site is proposing to deliver to traders.
What Is Spredd Markets?
Right off the hop, Spredd Markets is addressing the elephant in the room. Prediction markets are currently under fire from betting sites and from pro sports leagues. Both claim that these trading sites are really nothing more than online sportsbooks in disguise and thus, should be regulated in the same manner as the betting industry.
With traditional sports prediction markets, players are trading on outcomes – see Kalshi. You are either banking on a specific result to happen, or not to happen. Spredd Markets is admitting right up front that traditional prediction markets often blur the line between forecasting and gambling. This however, is where the site insists that its product is an entirely different entity.
Spredd Markets insists its outcomes are based on skill rather than luck. The system evaluates users based on accuracy, timing, and contrarian insight. It then rewards those forecasters who consistently demonstrate expertise, not just lucky guesses. Spredd Markets claims it will be of benefit to those with genuine expertise. It’s careful analysis and forecasting skill that will be properly valued and rewarded on this platform.
How Does It Work?
Traditional prediction markets are viewed as powerful tools for information discovery and collective forecasting. In the process of aggregating the wisdom of crowds, these sites can come up with reliably accurate insights into the outcomes of future events.
What is separating Spredd Markets from its sports prediction market rivals is that it operates by utilizing an innovative points system to calculate player rewards. The Spredd Markets Forecast Points (FP) formula rewards players in three different categories:
- Market Size Weight: This area rewards engagement in significant markets with substantial liquidity
- Early Participation Bonus: Rewarding to those players who contribute to price discovery when uncertainty is highest
- Correctness Multiplier: This area provides greater rewards for accurate predictions that go against market consensus
By taking this multidimensional approach, the formula is of benefit to those players willing to take calculated risks and not merely wait and see which way the wind is blowing before opting to go with the crowd.
Spredd Markets also rewards those players who prove to be consistent winners. Rather than paying out rewards for individual market outcomes, Spredd Markets rewards players via a weekly leaderboard system.
At the end of each week, the top 10 forecasters split the reward pool based on their ranking. As well, the Top 10 market creators share rewards based on the engagement their markets generate. First-place finishers garner a 30% share of the prize pool. All of these distributions take place automatically through transparent smart contracts.
It’s a structure that rewards consistent excellence across multiple markets rather than isolated wins. By doing so, Spredd Markets is creating a merit-based ecosystem in which the most skilled traders will be rising to the top, not unlike how the system works with the stock market.
The best players will be assembling a portfolio of success that displays the track record of their forecasting abilities. Every prediction, every market, and every point earned becomes part of your on-chain history. In the process, you’re building a portfolio that is demonstrating your expertise. Players can take that portfolio into the business world as they seek work in fields ranging from finance and research to policy and business strategy.
Is Spredd Markets App Legal?
While the debate rages on about the legality of prediction markets, as derivatives traders, in the US all of these entities currently fall under the regulatory umbrella of the Commodity Futures Trading Commission (CFTC). Visit https://x.com/spreddai.
The CFTC has promised that it would be conducting roundtable hearings in the near future to determine the legality of sports prediction markets in comparison to sports betting.
Explore legal betting and casino sites in New York, and check out top promos.
