Alliance Co-Founder Imran Khan Flags DeFi Liquidity Risks in Kalshi ETH, XRP, SOL Perps

Alliance co-founder Imran Khan has raised concerns about DeFi liquidity risks tied to Kalshi’s recently launched ETH, XRP and SOL perpetual futures contracts, questioning whether the prediction market platform can sustain adequate market depth for these products.

Khan, who co-founded the crypto accelerator Alliance, flagged the liquidity issue on X, drawing attention to how Kalshi’s perpetual products could face challenges sourcing sufficient depth across three separate crypto markets simultaneously.

Why DeFi Liquidity Matters for Kalshi’s Perps

Kalshi, which announced its perpetual futures launch as part of a broader push into crypto derivatives, is offering contracts on Ethereum, XRP and Solana. Perpetual futures, unlike traditional futures, have no expiration date, meaning they require continuous liquidity to maintain fair pricing and tight spreads.

The concern Khan raised centers on whether a platform built primarily around event contracts can attract enough market makers and trading volume to keep these perpetual products functioning smoothly. Thin liquidity in perps markets can lead to wider spreads, slippage and pricing that diverges from spot markets.

Kalshi has published educational material explaining perpetual futures to its user base, signaling an effort to onboard retail participants. But retail flow alone may not be sufficient to sustain the depth needed for three separate crypto perpetual markets, particularly for assets like XRP and SOL that already see more fragmented liquidity than Bitcoin or Ethereum on established venues.

What This Signals for Kalshi’s Crypto Expansion

Khan’s criticism carries weight given his role at Alliance, one of the more prominent crypto accelerators. The fact that the concern spans ETH, XRP and SOL, rather than a single asset, suggests a structural question about Kalshi’s capacity to support multi-asset perpetual trading.

The scrutiny arrives as crypto derivatives markets continue evolving rapidly. Spot Bitcoin ETFs have seen strong inflows in recent weeks, highlighting growing institutional appetite for regulated crypto exposure. Meanwhile, Solana-based DEX trading has drawn attention for its own liquidity dynamics.

For market participants watching Kalshi’s crypto push, the key question is whether the platform can attract institutional market makers willing to provide continuous liquidity across all three perpetual contracts. How Kalshi addresses these concerns, and whether trading volume validates or undercuts Khan’s criticism, will shape perceptions of the platform’s viability as a regulated crypto derivatives venue going forward.