Svmuu News: Spotify has asked prediction market platforms Kalshi and Polymarket to remove its branding and clarify that there is no partnership between the two companies, after it was discovered that the music streaming data on which the platforms’ settlements were based had been artificially inflated.
Spotify stated that it has removed more than 500,000 instances of “fake traffic.” These anomalous plays had propelled certain songs onto the platform’s charts and were used to settle a prediction market on Kalshi regarding “June’s Top Songs on Spotify in the U.S.,” a market with a trading volume of approximately $3 million. Since the settlement was based on chart results prior to the data correction, the relevant trades had initially identified the song as the winner. After completing its investigation, Spotify contacted both platforms to rectify the situation. Kalshi is reportedly investigating the incident, while Polymarket has not yet responded. (Bloomberg)