Polymarket Eyes $50 Million Funding Amid $900M U.S. Election Bet

Polymarket seeks $50 million in new funding as U.S. election betting hits nearly $1 billion on its platform. The platform is considering launching its own token to validate real-world event outcomes, with uncertainty over UMA Protocol’s role.

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Meghna Chowdhury
Meghna Chowdhury
Meghna is a Journalism graduate with specialisation in Print Journalism. She is currently pursuing a Master's Degree in journalism and mass communication. With over 3.5 years of experience in the Web3 and cryptocurrency space, she is working as a Senior Crypto Journalist for UnoCrypto. She is dedicated to delivering quality journalism and informative insights in her field. Apart from business and finance articles, horror is her favourite genre.

Polymarket, a crypto-based prediction market platform, is looking to raise $50 million in new funding as it rides the wave of U.S. election betting fever.

According to an article published by The Information, the New York-based startup is also contemplating issuing its own token, with investors in this funding round potentially receiving warrants to buy these tokens if the issuance proceeds.

The tokens could allow users to validate the outcomes of real-world events on the platform, marking a new chapter for Polymarket as it seeks to grow further.

Polymarket’s More Than $900M Funds on the Presidential Election Winner 2024 Bet

Polymarket, a startup in the prediction market space, hasn’t said if these tokens will work in addition to, instead of, or as a substitute for its current oracle service, the UMA Protocol, which resolves markets. Although UMA’s token experienced a minor increase after the article’s release, its exact position in the token scheme is still unknown.

Through two funding rounds earlier this year, a $25 million raise and a $45 million Series B round headed by Peter Thiel’s Founders Fund, Polymarket has now raised $70 million. One of 2024’s biggest triumphs is the platform, particularly for the long-underappreciated field of prediction markets. Smart contracts are used to secure bets made on Polymarket.

According to Dune Analytics, Polymarket hit a monthly trading volume of $472 million in August, an all-time high, and is on track to surpass $397 million in September.

The platform allows users to bet on a variety of topics, including sports events, geopolitical tensions, and more. However, the U.S. presidential election remains the most popular betting subject, with nearly $1 billion staked so far.

Regulatory Hurdles and Legal Scrutiny

Despite its popularity, Polymarket is subject to regulatory limitations. As a result of a settlement with regulators, U.S. users are unable to access the platform. However, there are rumours that some US traders are employing VPNs to get over these limitations.

The U.S. Commodity Futures Trading Commission (CFTC) has taken notice of the platform’s explosive expansion and warned offshore election-betting firms that expose U.S. consumers to risk being closely monitored. Chairman Rostin Behnam issued the warning. He threatened to file a civil enforcement action with the CFTC if businesses such as Polymarket broke American law.

The continued success of Polymarket serves as a reminder of the growing need for prediction markets, especially in light of significant political events such as the US election.

The platform’s capabilities might be further improved by the possible token issue, which would enable it to attract more users and provide creative methods for confirming the results of actual events. However, to keep moving forward, Polymarket will have to negotiate the tricky legal environment as regulatory scrutiny increases.

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