XO Market Secures $6M to Expand User-Generated Prediction Markets

(AsiaGameHub) –   XO Market has secured $6 million in seed funding to develop its prediction market platform, which empowers users to create tradable events rather than relying on internal listing teams.

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Key Highlights

• XO Market has facilitated over $150 million in trading volume since its mainnet beta launch.
• The seed round included investments from Coinbase Ventures, 20VC, Picus Capital, and Venture Together.
• XO reports that users have established more than 600 markets on the platform.

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XO Market Empowers Users to Build Prediction Markets

XO Market aims to differentiate itself in the prediction market sector, currently dominated by players like Kalshi and Polymarket, by adopting a distinct approach. Instead of having staff select which contracts are available, XO enables individuals and companies to create their own markets, set fees, define parameters, and allow others to trade on them.

Co-founder Ali Habbabeh drew a media analogy to explain this difference. He stated in an interview with CoinDesk, “Today’s major platforms like Kalshi and Polymarket act more like Netflix. They decide what markets exist. We’ve flipped that model entirely. On XO, users create the markets themselves.”

The seed funding round saw participation from Coinbase Ventures, 20VC, Picus Capital, and Venture Together. Australian cricket captain Pat Cummins also joined as an angel investor.

$6M seed round just closed, led by @HarryStebbings at @20vcFund and @picuscap, alongside @cbventures, and others, plus 30+ angels including @patcummins30.

Read the full details from our CEO ↓ https://t.co/MisFDF2xOv

— XO Market (@xomarket) April 30, 2026

XO describes itself as the “YouTube of prediction markets,” a comparison that aligns with its user-generated content model. The platform commenced testnet operations in April 2025 and launched its mainnet beta in mid-November. Since then, it has attracted over 30,000 users, facilitated the creation of more than 600 markets, and processed over $150 million in trading volume.

Habbabeh explained that market quality naturally emerges through user engagement. “The metrics look strong because the incentives are aligned,” he said. “If you create a compelling market, people trade on it. If you don’t, it dies naturally.”

The current market conditions are favorable, as prediction market volume surged to over $60 billion in 2025, a significant increase from approximately $15 billion to $16 billion the previous year. Polymarket was a key driver of this growth, with its monthly trading volume escalating from $54 million at the beginning of 2024 to over $2.6 billion by November.

However, XO faces the challenge of ensuring liquidity for user-created markets. Other platforms that allow open market creation have struggled to maintain sufficient trading activity across a wide range of events. Larger competitors often avoid this model due to the potential strain on infrastructure required to support liquidity across numerous events.

To address this, XO is introducing XO Vaults. This feature will enable users to pool capital and provide liquidity in specific categories like sports or politics, aiming for targeted annual yields of approximately 8% to 10%.

“On platforms like Kalshi or Polymarket, liquidity is controlled by a handful of large market makers,” Habbabeh noted. “With XO Vaults, anyone can become a market maker.”

He likened the structure to copy trading, but applied to liquidity provision. “It’s similar to copy trading, but for liquidity provision,” Habbabeh stated. “We’re targeting yields of around 8% to 10% annually based on what market makers typically earn.”

XO is also developing “XO Stories,” a product designed for more intricate market structures with multiple outcomes, extending beyond standard parlay-style formats. “It’s not your typical copy-paste of sportsbook parlays into prediction markets,” Habbabeh commented.

Regulatory scrutiny remains a significant concern for prediction market operators, particularly as governments and state regulators increase their focus on event contracts. XO contends that its on-chain architecture positions it differently from centralized platforms.

“Everything on XO is transparent and onchain,” Habbabeh emphasized. “That puts us in a different category compared to more centralized platforms.”

“The internet demonstrated that the most compelling content originates from users, not centralized studios,” Habbabeh concluded. “We believe prediction markets will follow the same trajectory.”