The post Robinhood (HOOD) Expands Prediction Markets While Eliminating Risky Contract Categories appeared on BitcoinEthereumNews.com.

TLDR Robinhood shares slid 1.33% on Friday, ending the session at $69.19 The brokerage is growing its prediction market offerings while eliminating certain high-risk contract categories “Mention Markets” contracts — wagers on specific words in public speeches — were discontinued due to abuse and manipulation risks The company collaborates with regulated U.S. platforms Kalshi and ForecastEx instead of crypto-based competitors like Polymarket CEO Vlad Tenev described prediction markets as the company’s “fastest-growing business ever” in 2025, with 12 billion contracts exchanged Robinhood continues to scale its prediction markets operation, but the company is establishing firm boundaries around which contract types it will make available to traders. Robinhood Markets, Inc., HOOD The brokerage has eliminated specific event-based contracts from its offerings, particularly “Mention Markets” — instruments allowing traders to wager on whether certain words will appear in speeches or corporate earnings calls. According to Robinhood UK President Jordan Sinclair, these contracts were discontinued over concerns related to potential market abuse and insider trading vulnerabilities. “We don’t necessarily offer all prediction markets or all event contracts,” Sinclair explained. “There are some we’ve chosen that aren’t right for our customers.” This move arrives as prediction market platforms encounter heightened regulatory examination. Multiple prominent incidents have sparked concern throughout the sector. Substantial, suspiciously-timed wagers emerged before a U.S. military operation targeting Iran. Israeli law enforcement brought charges against two people accused of exploiting classified defense intelligence to place bets. Trading volume also spiked prior to a Nobel Peace Prize reveal, prompting an official leak probe. Beyond geopolitical events, a former editor associated with a popular YouTube channel paid a $20,000 penalty for wagering based on insider knowledge of unreleased video content. These incidents demonstrate how prediction markets become vulnerable to exploitation when results depend on confidential information. Choosing Compliance Over Decentralization Robinhood has deliberately…

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Filed under: News - @ April 12, 2026 1:27 pm