Fintech platforms adding prediction market features risk accelerating user churn, according to Inversion Capital founder and chief executive Santiago Roel Santos.
Santos said the growing trend toward prediction markets introduces casino-like dynamics that undermine long-term value creation.
He argued that while prediction markets have merit in theory, embedding them in mainstream finance apps creates structural risks.
Santos said these features increase the likelihood of user account liquidation over time.
The problem with casino-like products isn’t that users lose money. It’s that casinos accelerate churn.
Santiago Roel Santos said.
He explained that liquidation removes users entirely from financial platforms.
The longer you exist inside a casino, the higher the probability of liquidation. And liquidation means you’re out of the game entirely. A churned user is worth zero.
Santos added.
Several major fintech and crypto platforms are expanding into prediction markets.
Robinhood has increased its focus on event-based markets throughout 2025.
Crypto exchanges Coinbase and Gemini are also preparing to launch similar offerings.