Polymarket stands as the premier decentralized platform for prediction markets and is contemplating the issuance of a fresh token to verify the outcomes of real-world scenarios, according to a Monday report by The Information, which cites insiders familiar with the situation. planning In a bid to ramp up its operations, Polymarket is on the hunt for $50 million worth of fresh capital.
According to a recent report, as the 2024 U.S. presidential election becomes more heated, the Polygon-based betting platform, which has gained significant attention due to its connection to these elections, is also chasing $50 million to enhance its operations, a move that could align perfectly with the current political momentum.
There's speculation that the potential launch of this new token might either accompany, supplant, or offer an alternative to the existing UMA Protocol, the current oracle service utilized by Polymarket for resolving market results and managing disputes.
More Tokens Coming to Market
Sources suggest that investors partaking in the anticipated funding round may receive warrants giving them the option to purchase the tokens if Polymarket carries through with the token issue.
While concrete details about whether investments will involve equity or exclusively token warrants remain undisclosed, neither the timeline nor the specifics of the investment terms have been released at this time. Polymarket hasn't commented on its valuation or any other investment particulars.
Polymarket's strategy does not involve charging transaction fees, which has led to beliefs that introducing a token might be aimed at expanding its revenue channels. Furthermore, there are reports of traders maneuvering to secure favorable positions for potential airdrops linked to this forthcoming token.
Should the new funding round come to fruition, it would succeed Polymarket’s $45 million Series B funding achieved in May, supported by notable figures such as Peter Thiel’s Founders Fund, Vitalik Buterin, and Dragonfly among others.
Before the Series B round, Polymarket completed an undisclosed $25 million Series A round led by General Catalyst, with contributions from key investors like Airbnb’s Joe Gebbia and Polychain, marking a total of $70 million raised across its two funding rounds.
Raising Money
With these funds, Polymarket plans to scale its global platform for prediction markets further. Even with regulatory concerns on the horizon, Polymarket has witnessed booming trading volumes in 2024, amassing a record $472 million in August, with a notable $397 million already recorded this month.
Joining forces with seasoned futures industry pro Richard Jaycobs, Polymarket aims to spearhead market expansion endeavors, including venturing into regulated activities in the U.S.
This report arrives as Polymarket encounters growing scrutiny from the CFTC (Commodity Futures Trading Commission) and an uptick in rivalry from emerging competitors.
Previously, the CFTC had mandated Polymarket to discontinue offering options contracts and imposed a civil monetary penalty of $1.4 million. Although Polymarket has ceased operations within the U.S. due to ongoing regulatory scrutiny, it continues to operate on a global scale.
As it stands, the CFTC is keenly examining Polymarket among other offshore crypto-betting entities, looking to ensure that these platforms adhere to U.S. law. The agency has also conveyed its potential to enforce actions against platforms with notable U.S. presence that do not register derivatives contracts.
In another development, Wintermute, a dominant figure in cryptocurrency market-making, is setting the stage for a groundbreaking multi-chain prediction market initiative named “OutcomeMarket.” This forthcoming platform, utilizing Chaos Labs’ Edge Proofs Oracle, will specifically focus on bets concerning the U.S. presidential election.
Wintermute disclosed that the soon-to-launch prediction marketplace will enable users to place wagers seamlessly from their favored blockchain networks, including Ethereum, Base, and Arbitrum, thereby removing the technological limitations inherent in single-chain platforms.
As part of its initiative, Wintermute intends to unveil two tokens, TRUMP and HARRIS, representing the candidates. These tokens are designed for betting and use in DeFi applications and will be tradable on several exchanges.
The introduction of Wintermute’s OutcomeMarket aims to deliver superior accessibility and functionality in comparison with current platforms such as Polymarket.
Nicholas Say hails from Ann Arbor, Michigan. His life journey has taken him far and wide, spending numerous years in Uruguay and currently residing in the Far East. His works are widely accessible online, with a strong focus on progressive development and the pioneering technological innovations of tomorrow.
