Polymarket Seeks 50 Million in New Funding Plans to Launch Token Report

Coin World reported:
According to sources familiar with the matter cited by technology media The Information on September 23, a blockchain prediction platform is in negotiations to raise $50 million in funding.
According to The Wall Street Journal, the New York-based company is also considering issuing its own tokens to operate its gambling market, with potential funding round investors receiving authorization to purchase these tokens.
Polymarket will use the token “as a way to verify real-world event outcomes by users”; it added that if it goes ahead, this will be one of the “most high-profile token debuts” since the bear market of 2022.
Polymarket’s rapid growth
Polymarket has previously raised $70 million in two funding rounds, including a $45 million Series B led by Peter Thiel’s Founder Fund.
The platform is particularly popular in the United States.
For the presidential election betting, this event has seen nearly $1 billion in wagers, accounting for 85% of its trading volume. It has also been used to bet on Taylor Swift’s engagement prospects and the Super Bowl champion.
Kamala Harris’ lead has narrowed to 3%.
There are 43 days until the election.
pic.twitter.com/Ua6UvlAVLK
— Polymarket (@Polymarket)
September 23, 2024
The platform uses Polygon’s layer-two blockchain technology and UMA Protocol’s oracle service, settling bets in the USDC stablecoin. However, due to regulatory restrictions, Polymarket blocks IP addresses from the United States, although it has been reported that some users have bypassed this restriction using VPNs.
However, US regulators are not satisfied with the platform. CFTC Chairman Rostin Behnam previously issued a warning about offshore election gambling platforms serving US customers, hinting at potential regulatory actions.
Polymarket has achieved significant growth, with monthly trading volume reaching $472 million in August, according to Sandhill Analysis. It is expected to break the September record, which has already reached $400 million.
Furthermore, monthly trading volume has surged by 774% since the beginning of this year. The platform reached a peak of 64,524 monthly active traders in September.
Increase in cryptocurrency funds
According to DeFiLlama, there was $634 million in cryptocurrency funds in August. This represents a 130% increase compared to the same period in 2023.
However, cryptocurrency venture capital is still below its peak at the end of 2021 when over $3 billion was invested in blockchain startups each month.
Two larger funding rounds this month were for DeFi “super app” LogX, which raised $4 million, and cross-chain liquidity platform Prime Protocol, which raised $1.25 million.