Fintech Prediction Markets Risk Churn: Inversion CEO

Inversion Capital CEO Santiago Roel Santos has voiced strong concerns regarding the integration of prediction market add-ons into fintech platforms. He argues that these casino-like features significantly elevate the risk of user liquidation, which in turn leads to higher churn rates among users. This approach, according to Santos, ultimately undermines the long-term value capture essential for fintech sustainability.

The critique highlights a growing trend in the fintech sector where companies are experimenting with prediction markets to enhance user engagement. However, Santos warns that such innovations carry inherent risks that could destabilize user bases. By increasing the likelihood of liquidations—where users lose their investments due to volatile market conditions—these features erode trust and retention.

Published on December 22, 2025, this perspective comes amid broader discussions in economics and technology categories. Santos's argument emphasizes the need for fintechs to prioritize stable, value-driven strategies over short-term gimmicks. As the industry evolves, balancing innovation with risk management remains crucial to avoid costly user attrition.

Prediction markets have emerged as a popular add-on for fintech companies seeking to boost user interaction. These platforms allow users to wager on future events, mimicking betting systems that promise excitement and potential rewards.

However, Santiago Roel Santos, CEO of Inversion Capital, contends that such features resemble casino-like environments more than sound financial tools. This characterization underscores the volatile nature of these markets, where outcomes are unpredictable and tied to speculative behavior.

The integration of these add-ons aims to retain users through gamification, but Santos highlights the downside: they introduce elements that prioritize thrill over stability.

The primary concern raised by Santiago Roel Santos is the heightened user liquidation risk posed by prediction market features. Liquidation occurs when users' positions are forcibly closed due to market fluctuations, often resulting in losses.

In fintech settings, these casino-like add-ons amplify exposure to such risks. Users drawn in by the allure of predictions may overextend their investments, leading to rapid depletions of funds.

• Speculative betting mechanics encourage high-stakes participation.
• Volatile outcomes trigger automatic liquidations in leveraged environments.
• Lack of safeguards exacerbates financial vulnerabilities for average users.

Santos argues this dynamic not only harms individual users but also destabilizes the platform's overall user base.

Churn, or the rate at which users abandon a platform, is a critical metric for fintech success. Inversion Capital CEO Santiago Roel Santos predicts that prediction market add-ons will drive up churn through their risky nature.

Users experiencing liquidations are likely to lose confidence and seek alternatives with more predictable services. This attrition compounds as negative experiences spread, deterring new sign-ups.

The connection is direct: casino-like features may initially attract users but fail to sustain them amid losses. Santos's view positions these add-ons as a short-term gain with long-term costs.

Broader Industry Implications

In the economics and technology sectors, this critique serves as a cautionary note. Fintechs must weigh engagement tactics against retention realities to avoid self-inflicted churn.

At the core of Santiago Roel Santos's argument is the erosion of long-term value capture. Fintechs rely on sustained user loyalty to build revenue streams and market share.

Casino-like prediction markets disrupt this by fostering a cycle of risk and loss. Instead of creating enduring value, they prioritize immediate engagement at the expense of stability.

• High churn reduces lifetime user value.
• Liquidation events damage brand reputation.
• Focus shifts from innovation to recovery efforts.

Santos urges a reevaluation of such features to ensure they align with sustainable growth objectives.

Conclusion: A Call for Balanced Innovation

In summary, the warnings from Inversion Capital's CEO highlight the pitfalls of unchecked experimentation in fintech. By addressing liquidation risks and churn drivers, companies can safeguard their future. This perspective, rooted in economic and technological insights, encourages a more measured approach to platform enhancements, ensuring long-term viability over fleeting gains.