Polymarket Seeks $50M in Funding; Eyes Token as Strategy

Polymarket, a blockchain prediction market, seeks to raise $50 million as political betting on the platform rises. On Tuesday, a news source posted on its X profile that the platform is seeking to raise more than $50 million. It also added that the platform might launch its token to cash in on the election betting craze. 

Exclusive: Polymarket is in talks to raise more than $50 million, explores token launch to cash in on election betting craze.https://t.co/wDYyKFYB0D

From @KateClarkTweets and @Yueqi_Yang

— The Information (@theinformation) September 23, 2024

The token proposal could revolutionize the platform by creating an efficient and decentralized ecosystem for verifying outcomes. The investors in the funding round are expected to receive the native token warrants. At present, the platform uses the UMA protocol (an external Oracle service) to resolve and verify market outcomes. The potential token would enhance user engagement by integrating more DeFi features into its platform.

Polymarket, a New York-based startup, has gained attention for its unique approach to predicting markets. The platform is currently using the upcoming US elections to spike its activity. It has already garnered over $1 billion in trade volume from the community on who would win the elections.

Polymarket had already received $70 million from previous fundraising events. It raised about $25M in Series A funding and $45M in Series B funding, the latter of which was led by Peter Thiel’s Founders Fund. If the current request of $50 million is achieved, the platform will receive additional capital, which will further enhance its operations and token offerings. 

Despite its success, Polymarket is being targeted by regulators, especially from the U.S. Commodity Futures Trading Commission (CFTC). Rostin Benham, CFTC Chairman, recently warned about the potential legal challenges that offshore betting platforms, including Polymarket, might face if they fail to comply with the regulations. The future of Polymarket, including its potential token launch, will heavily rely on the regulations and their developments.