The rise of prediction markets on platforms like Coinbase is fueling a broader debate about the future of crypto apps. While companies argue these products are regulated financial instruments, critics see them as blurring the line between investing and gambling.

With increasing legal scrutiny and user pushback, the industry faces a key question: should crypto platforms focus on financial innovation or expand into high-risk, entertainment-driven products? How companies answer this may shape both user trust and long-term adoption.