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Polymarket is aiming to raise an extra $50 million in new capital amongst expected plans of a new token launch.
Blockchain-based betting platform Polymarket is aiming to raise $50 million in new capital through a fresh funding round, with investors issuing token warrants. This will give them the right to purchase tokens if Polymarket decides to launch them in the future, according to sources close to the company as reported by The Information.
This comes after the company raised $70 million in two investment rounds this year, split between $25 million in a Series A led by General Catalyst and another $45 million in Series B led by Ethereum co-founder Vitalik Buterin. On top of this, Polymarket has been benefiting from the election throughout the year, generating almost $1 billion in trade volume from predictions around the battle to become the next president.
What is Polymarket?
Built using Ethereum and Polygon blockchain networks, Polymarket is a platform where users can buy and sell ‘shares’ in different possible outcomes of real-world events. One share can cost anywhere from nothing to 41 and the price is set according to the odds if it coming true.
The presidential election has drawn many people to the platform but Polymarket also offers the chance to bet on pop culture events, sports, and other political possibilities. At its peak, trading volume reached $472.8 million in August.
Its rapid rise is in no small part due to the fact that the betting exchange has become popular within the crypto community, being one of few betting platforms that allows bets to be made in cryptocurrencies. As such, the bets being placed have been used as an unofficial barometer to track the mood of the crypto community in the presidential election, a demographic that both Harris and Trump are fighting to win.
The growing popularity has also sparked some to wonder whether a token would be launched to help fund the platform, especially considering users are not currently charged fees.
Featured image: Ideogram
