Polymarket is looking to raise $50 million and is exploring a potential token launch as the on-chain betting platform grows.
Polymarket will raise $50 million in new funding and may launch a token that will “verify the outcome of real-world events,” The Information reported, citing unnamed sources.
Launched in 2020, Polymarket has emerged as a major player in the prediction market space this year with its smart contracts running on the Polygon blockchain. It allows users to bet on the outcomes of events ranging from sports to geopolitical tensions, with the US presidential election in particular drawing attention with close to $1 billion in bets.
According to data from DeFi Llama, Polymarket currently holds a total value of over $121 million. The company’s growth has accelerated after major organizations such as Bloomberg and CNN made statements on this issue. CNN even integrated Polymarket data into its election terminal.
The New York-based company is considering offering investors warrants for future token purchases as part of the funding round, but it is not yet clear whether investors will receive stock, token warrants or both if the token issuance plan moves forward.
The potential token could serve as a means for users to verify real-world event outcomes, according to the sources, though details on how that would work have not been disclosed. It’s also unclear whether the token would replace or complement Polymarket’s current use of the UMA Protocol, which resolves market outcomes through community votes.
The company had raised $70 million in two previous rounds, including a $45 million Series B round earlier this year led by Founders Fund, a venture capital firm founded by billionaire Peter Thiel.
Polymarket’s expansion plan comes as US regulators take a firm stance against election betting contracts, arguing that it could affect outcomes. CFTC Chairman Rostin Behnam recently commented on the situation, warning that platforms offering offshore election betting to US customers could face sanctions if found to be in violation of US law.
Currently, US users are blocked from accessing the platform under a 2022 settlement with the CFTC, although some reports suggest that American users are getting around these restrictions by using a VPN.
In related news, the on-chain prediction market continues to grow as leading cryptocurrency market maker Wintermute announced plans to launch OutcomeMarket, a multi-chain platform focused on betting on the US elections.