Polymarket Seeks New $50M Funding, Plans Token Launch: Report

According to a Sept. 23 report from tech channel The Information citing “people familiar with the matter,” the blockchain prediction platform is in talks to raise $50 million in funding.

According to the report, the New York-based company is also considering issuing its own token to manage its betting market, with potential investors in the funding round receiving warrants to buy those coins.

Polymarket would use the token “as a way for users to validate the outcome of real-world events.” If it goes ahead, it would be one of the “highest-profile chip debuts” since the bear market of 2022, he added.

Increased Polymarket growth

Polymarket previously raised $70 million in two rounds of funding, including a $45 million Series B led by Peter Thiel’s Founders Fund.

The platform is particularly popular for betting on the US presidential election, with nearly $1 billion wagered on this event accounting for 85% of its volume. It has also been used to bet on Taylor Swift’s engagement prospects and Superbowl winners.

Kamala Harris’ lead drops to 3% in odds.

43 days until the elections. pic.twitter.com/Ua6UvlAVLK

— Polymarket (@Polymarket) September 23, 2024

The platform uses Polygon’s layer 2 blockchain technology and UMA protocol oracle services and settles bets in the USDC stablecoin. However, due to regulatory restrictions, Polymarket blocks US IP addresses, although some users are said to circumvent this by using VPNs.

However, US regulators are not happy with the platform. CFTC Chairman Rostin Benham has previously warned about offshore election betting platforms serving US customers, implying potential regulatory action.

Polymarket has seen significant growth, with monthly trading volume reaching $472 million in August, according to Dune Analytics. It’s on track to break that record from September, which has already taken in $400 million.

In addition, monthly volumes have increased by 774% since the beginning of this year. Monthly active traders on the platform already peaked at 64,524 in September.

Crypto funding is on the rise

According to DeFiLlama, there was $634 million in crypto funding in August. This represents a gain of 130% compared to the same month in 2023.

However, crypto startup funding remains below its peak in late 2021, when more than $3 billion was invested in blockchain startups every month.

Two of the biggest raises this month were for DeFi “superapp” LogX, which raised $4 million, and cross-chain liquidity platform Prime Protocol, which raised $1.25 million.

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