Wu reported that Imran, co-founder of Alliance, stated that a series of products launched by the US compliance prediction market platform Kalshi essentially have a net negative effect on "on-chain liquidity." Imran believes that each time Kalshi launches a new product, it is effectively siphoning trading liquidity from the on-chain environment into offshore/traditional off-chain closed-loop environments. This also causes new users entering the market through Kalshi to be more inclined to stay within its closed off-chain ecosystem, rather than converting into crypto-native users on Hyperliquid, Polymarket, or other public blockchains. Imran is concerned that although on-chain liquidity is currently sufficient to absorb this diversion, in the long term, if the primary needs of marginal users and marginal funds are captured off-chain first by compliant platforms like Kalshi, then the capital, positions, and settlement states tied to it will become disconnected from the crypto ecosystem.