Spotify has removed streams of the song that rocketed to the top of its U.S. charts after discovering suspicious betting activity tied to the track on the prediction market Kalshi.
The song “Earrings” by Malcolm Todd surged 70 per cent overnight on Sunday, propelling it to No. 1 on Spotify’s U.S. streaming chart, according to the Financial Times. On Wednesday, Spotify took action, stating the streams did not appear to come from genuine listeners.
“All streaming services face ever-changing stream manipulation,” a Spotify spokesperson said. “Spotify has best-in-class detection and mitigation practices for manipulated streams, and we don’t pay out associated royalties.”
A Kalshi spokesperson confirmed the company is in contact with Spotify and actively investigating the matter.
The episode highlights increasing concerns about the integrity of prediction markets like Kalshi and Polymarket. Critics warn that these platforms may lack sufficient safeguards against manipulation or the use of non-public information by insiders who can influence outcomes.
In a previous high-profile case, a suspiciously timed bet on the capture of Venezuelan leader Nicolás Maduro raised similar red flags. A U.S. special forces soldier later faced charges for allegedly using classified details from the operation to profit on the market.
The Commodity Futures Trading Commission (CFTC) oversees these markets, which have attracted billions in venture capital in recent years.
Spotify’s swift response aims to protect the accuracy of its charts and royalty system, while the incident puts fresh pressure on prediction platforms to strengthen their controls.
