Key Takeaways
- • Kalshi said Thursday it has mutually ended Donald Trump Jr.'s advisory role after his venture firm 1789 Capital led a major funding round for rival Polymarket and invested $300 million in it over the summer.
- • The two sides began discussing parting ways in August, according to Reuters, and the split was confirmed by a Kalshi spokesperson to the New York Post.
- • Trump Jr. was named a "strategic advisor" to Kalshi in January 2025 and received an equity stake valued at $300,000 at the time, according to the Financial Times.
- • Kalshi is reportedly in talks to raise funds at a $40 billion valuation, while Polymarket is reportedly targeting a valuation above $20 billion.
- • Democrats in Congress are threatening tougher scrutiny of prediction markets, with Sen. Elizabeth Warren vowing to crack down on insider trading.
Summary
Prediction market operator Kalshi said Thursday that it has cut ties with Donald Trump Jr., ending his role as a strategic advisor after his venture capital firm, 1789 Capital, significantly increased its exposure to rival Polymarket. According to Reuters, 1789 Capital led a major funding round for Polymarket and invested $300 million in the company over the summer. A Kalshi spokesperson told the New York Post: "We have mutually agreed to end Don's advisory role after his firm's significant investment in a competitor this past summer," adding, "We are grateful for his contributions in helping us market Kalshi to more customers."
Reuters reported that the two sides began discussing going their separate ways in August. Trump Jr. had been named a strategic advisor to Kalshi in January 2025 and received an equity stake valued at $300,000 at the time, according to a Financial Times report. Neither Trump Jr. nor Polymarket immediately responded to requests for comment.
The separation comes as both platforms pursue significant capital. Kalshi has reportedly been in talks to raise funds at a $40 billion valuation, and Polymarket is reportedly aiming for a valuation above $20 billion. Prediction markets rose to prominence during the 2024 presidential election, when they signaled a Trump victory in contrast to traditional opinion polls, and Kalshi has since touted the accuracy of its forecasts.
The sector's rapid growth has also drawn regulatory attention on Capitol Hill, where Democrats are threatening tougher scrutiny of the platforms. Sen. Elizabeth Warren (D-Mass.) has vowed to crack down on insider trading in prediction markets amid growing concerns about oversight of the industry.
Reuters reported that the two sides began discussing going their separate ways in August. Trump Jr. had been named a strategic advisor to Kalshi in January 2025 and received an equity stake valued at $300,000 at the time, according to a Financial Times report. Neither Trump Jr. nor Polymarket immediately responded to requests for comment.
The separation comes as both platforms pursue significant capital. Kalshi has reportedly been in talks to raise funds at a $40 billion valuation, and Polymarket is reportedly aiming for a valuation above $20 billion. Prediction markets rose to prominence during the 2024 presidential election, when they signaled a Trump victory in contrast to traditional opinion polls, and Kalshi has since touted the accuracy of its forecasts.
The sector's rapid growth has also drawn regulatory attention on Capitol Hill, where Democrats are threatening tougher scrutiny of the platforms. Sen. Elizabeth Warren (D-Mass.) has vowed to crack down on insider trading in prediction markets amid growing concerns about oversight of the industry.
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