Polymarket, the blockchain-based predictions platform, is currently in discussions to raise an additional $50 million in capital amid potential plans to launch its own token. The move comes as the platform continues to attract significant interest, with nearly $1 billion in wagers placed on the upcoming U.S. presidential election alone.
According to reports, investors in the potential funding round will receive token warrants, granting them the right to purchase tokens if Polymarket decides to launch them at a later date. The platform is considering using the tokens as a way for users to validate the outcome of real-world events.
Polymarket was founded in 2020 by CEO Shayne Coplan and has emerged as a compelling narrative within the crypto space over the past year. The platform allows users to buy and sell shares using crypto tokens as they bet on the likelihood of future events taking place.
In May 2023, Polymarket raised $45 million in a Series B funding round led by Peter Thiel’s Founders Fund and existing investors 1confirmation and ParaFi, with participation from Ethereum co-founder Vitalik Buterin, Dragonfly, and Eventbrite co-founder Kevin Hartz.
And traders are taking outsized bets this year, with total trading volume reaching its highest point on the platform last month, topping out at $472.8 million, according to one Dune DASHBOARD Its popularity has led those within the Polymarket community to opine in recent weeks on the possibility of a token to help fund operations, as the platform does not currently charge users fees.
As of now, Polymarket has not made a final decision regarding the token launch, and there is no guarantee that it will proceed. However, the potential fundraising and token launch could help the platform further develop its offerings and expand its user base in the rapidly evolving world of blockchain-based predictions and betting.
