- Polymarket aims to raise $50M, capitalizing on growing interest in U.S. election betting.
- Investors may receive warrants for tokens if Polymarket proceeds with token distribution.
- Polymarket’s trading volume hit $472M in August, with U.S. elections driving $1B in bets.
Polymarket, a prediction market platform that operates on the blockchain, is targeting to raise $50 million in new funding to ride on the increasing interest in U.S. election betting. As reported by The Information, the New York-based company is also planning to release its own token to give users more ways to check real-world event outcomes.
The report also notes that investors in this funding round may receive warrants that allow them to buy tokens provided Polymarket proceeds with token distribution. Nevertheless, it is still unknown whether it will be integrated alongside UMA Protocol, which is an oracle service Polymarket uses for market dispute resolution by means of community voting. Polymarket and UMA have not provided any statement regarding these events.
Polymarket Secures $70M Funding
Earlier this year, the platform secured $70 million of funding across two rounds, with the lead being a $45 million Series B investment by Founders Fund’s Peter Thiel. The new $50 million in funding may help platfrom to expand further and strengthen its position on the prediction market market, especially in the crypto sphere.
Source: TheBlock
This funding round has generated interest because of the platform’s growth and because prediction markets may be about to undergo another transformation. Polymarket is an app where people can make predictions on different events, from political and sports to global topics. These bets are placed through smart contracts on the Polygon blockchain, with all the settlements made in USDC, a stablecoin that is anchored to the US dollar.
As Dune Analytics shows, platform hit an all-time monthly trading volume of $472 million in August. As of mid-September, the platform had executed $397 million in trades, so it was headed for another good month. The U.S. presidential election is the most popular event on the platform, and nearly one billion dollars have been placed on the contest.
Nevertheless, Polymarket is not devoid of legal issues since it has become popular rather quickly. The platform remains inaccessible for users with American IP addresses because of a legal agreement, yet, some traders have apparently managed to get around the restrictions with the help of VPNs.
As platform continue to expand its funding endeavours and explore new ideas, the platform will remain of keen interest within the wider crypto and prediction market sphere. The site’s big plans and the rate of its development suggest that Polymarket will likely continue to be a key player in the sphere in the coming years.
