<p><span data-contrast="auto">Decentralized sports prediction market Frontrunner raised $4.75 million in a seed round led by </span><span data-contrast="none">Susquehanna Private Equity Investments</span><span data-contrast="auto">.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Other investors in the round include SOMA Capital, Toy Ventures, Ledger Prime and WAGMI Ventures, according to the release.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>What is a sports prediction market?</h2> <p><span data-contrast="auto">Frontrunner is a prediction market that simplifies sports betting by removing the complexity of betting odds. Instead, individuals buy and sell shares in teams and players using crypto across sports markets such as the NBA, NFL and others.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Prediction markets are like futures markets. In the futures market, traders are betting on the future price of an underlying asset. In prediction markets, contracts pay out based on the outcome of future events.</span></p> <p><span data-contrast="auto">Co-founder and CEO Neil Zhang was inspired to build Frontrunner after placing a pre-season bet on the NFL team the San Francisco 49ers to win the Superbowl. Even as the team made it into the final, he realized there was still a good chance he could end up with nothing if they lost.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“The way that sports betting is, you're basically having this relationship where the sports betters are competing against the book directly,” said Zhang in an interview with The Block. “And in that case the book or the bookie is not incentivized to give users the best price based on liquidity, it really seems like a much more inefficient market when there's only a single source of your odds and your ability to buy or sell bets.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>Decentralizing prediction markets</h2> <p><span data-contrast="auto">Frontrunner set itself up as a decentralized network in an effort to ensure that the house doesn't always win. It’s non-custodial with users interacting with markets built on smart contracts, Zhang said. </span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“Every share essentially represents a bet between two parties, opposite sides, adding to a dollar,” Zhang said. “And the outcome of a season or a game or whatever prop were betting on, the $1 goes to the winning side and the other side is going to have nothing.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Bettors can trade to the very last second or take profits early, he added.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span><span data-contrast="auto">The platform was built using Injective, which is a protocol within the Cosmos ecosystem.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“The Injective protocol turned out to be perfect for us,” Zhang said. “The protocol is built specifically for companies to be able to quickly spin up decentralized exchanges of various assets."</span></p> <p><span data-contrast="auto">The startup launched on <a href="https://auth.getfrontrunner.com/login?state=hKFo2SB6U0o1T2xLTElVaTMya1p5SXNOYUpFZV8xWjIxT2VFRqFupWxvZ2luo3RpZNkgUjRxdGV1b3Z5YTFyM1dGVTNNbTNjdTZPWTA2ZUNtMHmjY2lk2SBKS1U0TXh2bjRpdVlnR1R4QzhOTGJhTDVNOFluWlZ4Qw&amp;client=JKU4Mxvn4iuYgGTxC8NLbaL5M8YnZVxC&amp;protocol=oauth2&amp;audience=prod&amp;redirect_uri=https%3A%2F%2Fapp.getfrontrunner.com%2Fcallback&amp;isNewUser=true&amp;scope=openid%20profile%20email%20offline_access&amp;response_type=code&amp;response_mode=query&amp;nonce=TnJlYUk4bjZrQkUxWVh0VGVPNklKYWJHeGpkaS1Ga2tyV1I5c3NHR2FScQ%3D%3D&amp;code_challenge=JYCC8yI62rhVX69V2UtZD53oqqFelbj1ktKM3KqW4JE&amp;code_challenge_method=S256&amp;auth0Client=eyJuYW1lIjoiYXV0aDAtcmVhY3QiLCJ2ZXJzaW9uIjoiMS4xMi4wIn0%3D">testnet</a> last quarter enabling people to test the platform without needing to spend crypto. Its mobile app is projected to be ready by the end of January, Zhang added.</span></p> <h2>Susquehanna's bet on Frontrunner</h2> <p><span data-contrast="auto">The fundraise closed in May. The proceeds have been put toward product development, team growth and securing licensing, Zhang said.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“We believe that the open and decentralized platform Frontrunner is building will bring together sports fans and betting enthusiasts from all around the world," said Dean Carlson, head of digital asset investments at Susquehanna Private Equity Investments LLP in a statement.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Susquehanna has its roots in sports betting having been founded by former poker players. </span></p> <p><span data-contrast="auto">“They're basically looking to get more exposure to both web3 and cryptocurrency and also to be able to get more liquidity and more capital into sports betting,” Zhang said. “And so, there's even the potential in the future for potentially having </span><span data-contrast="none">Susquehanna</span><span data-contrast="auto"> be a market maker or liquidity providers on our platform, which is such an exciting prospect for us in terms of really making this into a fully-fledged liquid market system.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Frontrunner aims to operate as a fully licensed platform, Zhang said. It’s hoping to receive an offshore gaming license in the Isle of Man in the first quarter of next year, which means it will be able to legally operate in a variety of jurisdictions including Canada, Mexico, Africa, Asia as well as parts of Europe and South America.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p>&nbsp;</p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>