#What is Pred and How Does it Operate?
Pred is a peer-to-peer sports prediction exchange utilizing the Coinbase Base network. Recently, it announced a significant funding round of $2.5 million, primarily led by Accel, with contributions from Coinbase Ventures’ BEF fund and Reverie. The infusion of fresh capital aims to bolster hiring efforts, increase liquidity, and expand user onboarding worldwide as the platform continues to build its sports trading infrastructure.
Currently in private beta, Pred operates through an invite-only access program. This innovative exchange allows users to trade positions on sports outcomes directly with one another, eliminating the necessity for traditional sportsbooks that establish odds and internally manage risk. The platform boasts swift execution times of 200 milliseconds, with spreads falling below 2%, all transactions being settled on-chain.
#How Does Pred Differ from Traditional Sportsbooks?
Pred distinguishes itself from conventional sportsbooks by allowing prices to emerge from open order books based on actual supply and demand, rather than being controlled by the house. This operating model mirrors financial exchanges, providing a more transparent and equitable betting environment. The foundation of the sports prediction market, estimated at $500 billion globally, still relies heavily on outdated infrastructure that often penalizes winning users.
The leadership at Pred highlights that their focused approach is not only innovative but tailored specifically to exploit the vast opportunities within the sports market. The importance of refining the user experience to cater to both retail and institutional participants highlights the strategic importance of fostering market liquidity.
#What Are the Future Plans for Pred?
Looking ahead, Pred's management is focused on expanding their team by tapping into talent from both the finance and sports industries. Additionally, they are pursuing institutional partnerships to further enhance market liquidity. The goal is to create a seamless trading experience for sports enthusiasts and investors alike. As they progress, this platform aims to redefine how sports betting is approached, establishing itself as a formidable player in an industry plagued by inefficiencies.