Two leading cryptocurrency prediction platforms, Polymarket and Kalshi, are competing for market dominance in an unconventional way: giving away free products.
Kalshi representatives distributed $50 food baskets to more than 1,000 people in Manhattan, while Polymarket announced plans to open a free grocery store next week.
Trading Volumes and Revenue Drive Competition
Both platforms are at the top of prediction market trading volumes, which now regularly exceed $400 million per day: four times the volume recorded a year ago. In 2025, Kalshi earned $263.5 million in commission revenue alone. Both platforms are now valued at several billion dollars, bolstered by major integrations and partnerships.
The Kalshi event took place at Westside Market in Manhattan from 12:00 PM to 3:00 PM on February 3. Social media videos showed lines stretching for several blocks. According to the Kalshi guest list, 1,795 people registered to receive free products, although some media outlets reported “thousands” of attendees.
Polymarket Launches New York’s First Free Grocery Store
Polymarket reported on February 3 that it signed a lease to open “New York City’s first free grocery store” and is donating $1 million to Food Bank for New York City, the city’s largest hunger-relief organization. The store will operate as a food distribution center for low-income residents across all five boroughs.
Polymarket representatives say the store has been in development for months and will be fully stocked when it opens next Thursday at 12:00 PM.
Marketing Strategies Escalate the Competition
Both platforms are also expanding media partnerships. Polymarket merged with Dow Jones in January, while Kalshi signed agreements with CNN and CNBC in December.
Polymarket recently launched a billboard campaign, while Kalshi uses digital billboards to display live prediction market odds. Despite their efforts, both platforms are barred from advertising during the Super Bowl on February 8.
Polymarket and Kalshi operate out of New York City, considered the global financial capital and home to the NYSE and Nasdaq.
Market Lessons From History
The Polymarket and Kalshi promotions echo classic dot-com-era marketing wars, like those of Pets.com and Webvan, which spent heavily on flashy campaigns but failed to maintain sustainable business models.
Although Kalshi’s commission revenue is impressive, the fourfold increase in trading volumes may indicate speculative behavior rather than steady growth. History shows that platforms spending heavily on free user acquisition often struggle to retain users once promotions end. The key question remains whether these campaigns build a loyal trader base or merely attract freebie seekers.
Source: https://coinpaper.com/14326/free-groceries-crypto-prediction-platforms-are-literally-paying-for-users-now
