Coinbase Introduces Prediction Markets for Event Outcomes

Coinbase has launched a new feature that enables users to participate in prediction markets, allowing them to trade on future events such as cryptocurrency prices, economic indicators, and sports outcomes.

The platform uses CF Benchmarks' Real-Time Index (RTI) as the source of truth for determining the outcome of each event. The RTI collects 60 price points at the last minute before expiration, and the official value is calculated by taking the average of these prices.

Users can buy 'Yes' or 'No' contracts on various events, with the price reflecting the market's odds of the event occurring. If a user buys a contract and the event happens, they earn $1 per contract minus their initial investment and fees.