Polymarket is seeking to secure $50 million in new funding while considering a potential token launch as its on-chain betting platform continues to expand.
As reported by The Information, which cites unnamed sources, the company is looking to raise this capital and might introduce a token designed to “validate the outcomes of real-world events.”
Since its inception in 2020, Polymarket has established itself as a key player in the prediction market arena, particularly this year, with smart contracts operating on the Polygon blockchain. The platform enables users to place bets on the outcomes of a variety of events, ranging from sports to geopolitical issues, with significant interest in the U.S. presidential election, which has seen nearly $1 billion wagered.
Data from DeFi Llama indicates that Polymarket now boasts over $121 million in total value locked. Its growth has been further fueled by coverage from major news outlets like Bloomberg and CNN, the latter of which has even integrated Polymarket data into its election terminal.
Based in New York, Polymarket is contemplating offering investors warrants for future token purchases as part of this funding round. However, it remains uncertain whether investors will acquire equity, token warrants, or a combination of both if the token issuance proceeds.
Sources suggest that the proposed token could act as a mechanism for users to validate the outcomes of real-world events, although specifics on its functionality have not been disclosed. It is also unclear if the token would replace or enhance Polymarket’s current use of the UMA Protocol, which determines market outcomes through community voting.
In other related developments, Polymarket traders are predicting that FTX’s Ellison will not face jail time. Earlier this year, the platform raised $70 million across two funding rounds, including a notable $45 million Series B led by Founders Fund, a venture capital firm co-founded by billionaire Peter Thiel.
Polymarket’s expansion comes at a time when U.S. regulators have taken a firm stance against election betting contracts, raising concerns about their potential influence on outcomes. CFTC Chairman Rostin Behnam recently issued warnings that platforms offering offshore election betting to U.S. customers could face enforcement actions if they violate U.S. law.
Currently, U.S. residents are prohibited from accessing the platform as a result of a 2022 settlement with the CFTC, although some reports indicate that American users may be circumventing these restrictions using VPNs.
In related news, the on-chain prediction market continues to evolve, with Wintermute, a well-known cryptocurrency market maker, announcing plans to launch OutcomeMarket, a multi-chain platform dedicated to U.S. election betting.
Read more: Wintermute to launch Polymarket competitor with Chaos Labs.