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About ProphetX
ProphetX is a US-based peer-to-peer sports prediction market platform where users trade event-outcome contracts directly against each other instead of against a bookmaker. It offers markets such as moneylines, spreads, totals, and player props. Prices are determined by supply and demand; users can post their own orders or match existing ones.
The core model resembles a financial exchange: trades are matched between participants, and the platform does not take the other side. It charges roughly 2% commission on net gains. This removes the traditional sportsbook vig and does not restrict winning accounts. As a CFTC-regulated Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), it operates in 49 states, including California and Texas, where sports betting is not legal.
The key pain point it addresses is the house edge and opaque pricing in traditional sportsbooks. ProphetX offers a visible order book and user-set prices, creating a more market-like mechanism. However, federal oversight replaces state gambling protections: there is no state self-exclusion registry, the minimum age is 18 rather than 21, and complaint procedures and tax treatment remain less clear.
In the past six months, ProphetX received CFTC approval for both licenses on June 11, 2026, and launched nationwide on June 18, 2026, retiring its earlier sweepstakes model. After the World Cup, active users and assets on the platform increased 50% in 30 days. Yet its pricing edge depends on growing liquidity; thin markets can be hard to fill. It also does not cover Nevada, and the federal-versus-state legal conflict remains unresolved.
ProphetX began in 2018 as Prophet Exchange, a New Jersey peer-to-peer sports betting exchange. In late 2023 it wound down that state-regulated operation, rebranded as ProphetX in July 2024, and launched a sweepstakes-based product across 40+ states in September 2024 .
A defining milestone came on June 11, 2026, when the CFTC approved ProphetX as both a Designated Contract Market and Derivatives Clearing Organization — the first sports-native, direct-clearing prediction exchange in the U.S. . It then launched nationwide on June 18, 2026, allowing users to trade, clear, and settle event contracts under federal oversight .
On July 28, 2026, ProphetX closed a $35 million round led by Parlay Capital and Data Point Capital, with participation from trading firms, signaling institutional confidence in regulated prediction markets . These steps mark its evolution from a state betting exchange to a federally regulated, vertically integrated sports prediction market.
Key milestones: In June 2026, ProphetX received CFTC approval to register as a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), becoming America's first federally regulated sports-native peer-to-peer prediction market and launching nationwide operations. In July, it launched stablecoin and crypto account funding with Zero Hash for 24/7 instant settlement; the same month it closed a $35M round led by Parlay Capital et al. to boost liquidity, scale B2B platforms, and advance its RFQ Parlay Mechanism. In September, it partnered with Agg Market to move its entire sports event contract catalog onto Solana, with Solana Foundation backing a developer grants program.
Future focus: deepen institutional-grade market infrastructure, grow B2B event contracts, and integrate on-chain rails to bridge TradFi and DeFi, targeting a tripling of 2026 trading volume.