Polymarket plans to raise $50 million and is exploring a potential token launch as the on-chain betting platform grows.
According to a report from The Information citing anonymous sources, Polymarket will raise $50 million in fresh funding and could introduce a token that would “validate the outcome of real-world events.”
Launched in 2020, Polymarket emerged as a prominent 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 various events, from sports to geopolitical tensions, with the U.S. presidential election drawing particular attention with nearly $1 billion wagered.
Data from DeFi Llama shows that Polymarket now holds over $121 million in total value locked, with its growth accelerating even further following mentions from major outlets such as Bloomberg and CNN, with the former even integrating Polymarket data into its election terminal.
The New York-based company is now considering offering investors warrants for future token purchases as part of the funding round, but it isn’t clear whether investors will receive equity, token warrants, or both if the token issuance plan moves forward.
The potential token could serve as a tool for users to validate real-world event outcomes, according to the sources, though the details of how this would function weren’t clarified. It is also unclear whether the token would replace or supplement Polymarket’s current use of the UMA Protocol, which resolves market outcomes via community votes.
Earlier this year, the company raised $70 million across two previous rounds, including a $45 million Series B led by Founders Fund, a venture capital firm started by billionaire Peter Thiel.
Polymarket’s expansion plan surfaces as U.S. regulators have taken a firm stance against election betting contracts, arguing that it may influence outcomes. CFTC Chairman Rostin Behnam recently commented on the situation, warning that platforms offering offshore election betting to U.S. customers would face enforcement action if found violating U.S. law.
Currently, U.S. residents are blocked from accessing the platform as a part of a 2022 settlement with the CFTC, but some reports suggest that American users have been bypassing these restrictions using VPNs.
In related news, the on-chain prediction market continues to grow, with Wintermute, a prominent cryptocurrency market maker, announcing plans to launch OutcomeMarket, a multi-chain platform focused on U.S. election betting.
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