Polymarket, a blockchain-based prediction market platform, is currently in talks to raise $50 million in funding. The move could precede the potential launch of a new crypto token, a step that could transform its operating model.
Polymarket: a new token to transform the prediction market!
The New York-based startup, which has already raised $70 million in two previous rounds, is looking to capitalize on the betting fever surrounding the US elections. Indeed, Polymarket allows crypto users to bet on various global events, including election results, football matches, and even geopolitical tensions.
Polymarket’s envisioned token would serve as a way for users to validate the outcomes of real-world events. Investors in the proposed funding round would receive warrants to purchase these tokens if Polymarket decided to issue them. This strategy could offer a new dimension to the crypto platform, increasing transparency and user confidence in betting outcomes.
Polymarket currently uses the UMA protocol as an oracle service to resolve markets and adjudicate disputes via community votes. It is not yet clear whether the new crypto token would replace, complement, or be an alternative to this protocol.
Crypto regulation still complex
Monthly trading volume on Polymarket reached an all-time high of $472 million in August, and this month is shaping up to be one of the best with $397 million in transactions recorded so far. This rapid growth underscores the growing interest in prediction markets and crypto in general.
However, Polymarket must also navigate a complex regulatory landscape. The platform blocks crypto users with US IP addresses due to a regulatory regulation, although some US traders have circumvented this restriction by using VPNs.
Polymarket’s quest for $50 million and the potential launch of a token represent major developments for the platform. These moves could not only strengthen its position in the prediction market but also provide new opportunities for crypto users and investors.
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