Prediction Markets Hurt Fintech User Churn: Inversion CEO

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Finance platforms racing to add prediction markets are doing so at the cost of accelerated “casino-like” user churn, says venture capital firm Inversion Capital founder and CEO, Santiago Roel Santos.

Santos argued in a blog post on Saturday that while he is a “believer in the underlying idea” of prediction markets, he thinks offering them in mainstream finance apps like Robinhood threatens future value capture by increasing the risk of user account liquidation. 

“The problem with casino-like products isn’t that users lose money. It’s…



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Prediction Markets Hurt Fintech User Churn: Inversion CEO


Finance platforms racing to add prediction markets are doing so at the cost of accelerated “casino-like” user churn, says venture capital firm Inversion Capital founder and CEO, Santiago Roel Santos.

Santos argued in a blog post on Saturday that while he is a “believer in the underlying idea” of prediction markets, he thinks offering them in mainstream finance apps like Robinhood threatens future value capture by increasing the risk of user account liquidation. 

“The problem with casino-like products isn’t that users lose money. It’s…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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