ProphetX
ProphetX is a peer-to-peer sports prediction market exchange, federally regulated by the CFTC as a DCM and DCO, where individual sports bettors trade event contracts directly against each other and the company earns a 3% commission on trades.
- Company typePrivate
- Founded2018
- HeadquartersNew York, United States
- Headcount11–50
- GTM typeB2C
- OfferingSoftware
What ProphetX does
ProphetX operates a peer-to-peer sports prediction market exchange headquartered in Hoboken/New Jersey and organized as ProphetX LLC under New York law. Founded in 2018, the company spent eight years navigating regulatory frameworks — beginning in the United Kingdom, transitioning through a New Jersey state betting exchange license and a sweepstakes-based virtual currency model — before receiving dual CFTC approval in June 2026 as both a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), making it America's first federally regulated sports-native prediction market. The platform enables individual sports bettors to set their own prices and trade sports event contracts directly against one another, with a proprietary Request for Quote (RFQ) Parlay Mechanism for multi-event contracts and a stated policy of not operating an affiliated trading arm that takes positions against customers.
The core product covers 20+ sports leagues including World Cup soccer, MLB, golf, tennis, and UFC, with trading across moneyline, spread, total, and parlay wagers. ProphetX monetizes through a 3% commission on all trades executed on the platform, supplemented by a public API that supports zero-fee high-frequency trading for market makers. The company employs between 11 and 50 people, recently expanded its senior leadership team (CFO Jesse Wachtel, CPO Nathan Busscher, CLO Bruce Fekrat, CCRO Gabriel Wong, VP of Growth Marketing Damon Mercadante), and has raised approximately $28.6 million across five funding rounds from investors including Data Point Capital, mixi, GFR Fund, and Sharp Alpha. Go-to-market relies on a self-serve product-led model with affiliate partnerships through sports media publishers, event-driven promotional bonuses, and content marketing aimed at onboarding retail sports bettors onto an exchange-style trading platform that differs structurally from traditional single-dealer sportsbooks.
ProphetX firmographics
Firmographics- Name
- ProphetX
- Legal name
- ProphetX LLC
- Website
- https://prophetx.co
- Company type
- Private
- Founded year
- 2018
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- ProphetX is a peer-to-peer sports prediction market exchange, federally regulated by the CFTC as a DCM and DCO, where individual sports bettors trade event contracts directly against each other and the company earns a 3% commission on trades.
- Ownership category
- akta.pro rank
ProphetX industry classification
Industry- Product category
- Sports Prediction Exchange
- NAICS
- Securities and Commodity Exchanges (523210), Commodity Contracts Intermediation (52316)
- SIC
- Commodity Contracts Brokers & Dealers (6221)
- akta.pro primary industry
- Prediction Markets & Event Derivatives (Crypto) (FSADAGAG)
- akta.pro secondary industry
- Data Platforms, BI/Reporting & Player Analytics (CDP/Attribution) (MPAEAKAI)
Keywords
Where ProphetX is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
ProphetX business model
Business model- GTM type
- B2C
- Offering type
- Software
- Cost components
- Technology or R&D, Personnel, Marketing or Sales, Operations, Others
Revenue model
- Commission Fees on Trades: ProphetX charges a 3% commission rate on user trades executed on the platform. As a peer-to-peer exchange, the company earns transaction fees when users buy and sell event-based contracts against each other.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Standard Trading Commission |
| Freemium | Monthly | Welcome Promotion |
Go-to-market motion1 record
Distribution channels2 records
Marketing channels4 records
ProphetX product offering
Product offeringCore offering
ProphetX operates a peer-to-peer sports prediction exchange where users trade directly against each other on the outcomes of sporting events rather than betting against a house. It functions as a CFTC-approved Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), charging a 3% commission on settled trades across multiple U.S. sports leagues.
Product overview
ProphetX is a peer-to-peer sports prediction market exchange that operates as America's first federally regulated sports-native prediction market. The core product is the ProphetX Platform, which enables users to trade sports event contracts directly against each other through a proprietary Request for Quote (RFQ) Parlay Mechanism. The company received CFTC approval in June 2026 as both a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), making it the first federally regulated sports-native exchange in the United States. The platform previously operated under a sweepstakes model using virtual currencies (Prophet Points and Prophet Cash) before transitioning to full CFTC regulation. Key differentiators include not operating an affiliated trading arm that takes positions against customers, distinguishing it from traditional sportsbooks. The platform supports trading across multiple sports including World Cup soccer, MLB, Golf, Tennis (Wimbledon), and UFC.
Differentiator
Problem solved
Functional benefit
Products and services
- ProphetX Core Platform Peer-to-peer sports prediction exchange where individual users trade contracts on the outcomes of sporting events directly against each other, eliminating the traditional sportsbook house edge. Operates as a CFTC-approved Designated Contract Market and Derivatives Clearing Organization.
- Request for Quote (RFQ) Parlay Mechanism Proprietary Request for Quote mechanism that enables users to construct and price multi-event parlay combinations on the ProphetX exchange, allowing counterparties to set their own prices on bundled event contracts.
- Public API Public application programming interface for the ProphetX exchange, providing programmatic access to platform functionality for high-frequency traders and developers.
Quantifiable outcome
- 46% of users on an exchange are profitable, versus 2% on a sportsbook
- +1 more outcomes
Companies that use ProphetX
Customer profileSegments1 record
Ideal customer profiles1 record
ProphetX technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Feature2 records
ProphetX partnerships and signals
Strategic signalScale indicators4 records
Recent moves4 records
Expansion highlights6 records
ProphetX competitors and assessment
Company assessmentMarket position
Strengths4 records
Competitive moat5 records
Key risks6 records
Key highlights6 records
Customer concentration
ProphetX social profiles
Digital presenceProphetX compliance and trust
Trust signalCompliance2 records
ProphetX financial estimates
Financial estimateRevenue estimate
Valuation estimate
ProphetX leadership team
Management profileNumber of profiles
Profiles5 records
ProphetX funding detail
Funding detailFunding overview
Funding rounds6 records
Investors19 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
ProphetX M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about ProphetX
What does ProphetX do?
ProphetX operates a peer-to-peer sports prediction exchange where users trade directly against each other on the outcomes of sporting events rather than betting against a house. It functions as a CFTC-approved Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), charging a 3% commission on settled trades across multiple U.S. sports leagues.
Is ProphetX a public or private company?
ProphetX is a private company. It is classified as venture growth investor backed and is currently operating.
When was ProphetX founded?
ProphetX was founded in 2018. It employs 11 to 50 people.
Where is ProphetX based?
ProphetX is headquartered in New York, United States, in the North America region.
How does ProphetX make money?
One revenue line is on record: commission Fees on Trades.
Does ProphetX have an API?
Yes. ProphetX offers a public API enabling programmatic trading. The API is available to all users and supports high-frequency trading for market makers. The platform provides liquidity and allows trading with zero fees for users utilizing the high-frequency API. Documentation references include API references and detailed platform mechanics accessible through the Documentation section. Developer documentation is at www.prophetx.co.
What industry is ProphetX in?
ProphetX's product category is Sports Prediction Exchange. Its primary akta.pro industry code is FSADAGAG, Prediction Markets & Event Derivatives (Crypto), with a secondary code of MPAEAKAI, Data Platforms, BI/Reporting & Player Analytics (CDP/Attribution). Its NAICS code is 523210 and its SIC code is 6221.