Polymarket, a crypto-based prediction market platform, is reportedly seeking $50 million in new funding amid increased interest in U.S. election betting. According to a report by The Information, the New York-based startup is also considering launching its own token. Investors in the funding round may receive warrants to purchase the token if Polymarket proceeds with the plan.
The token could be used to validate real-world event outcomes, though it’s unclear how it might relate to the UMA Protocol, which Polymarket currently uses for dispute resolution. The startup claims to be “oracle agnostic” in its documentation. Neither Polymarket nor UMA responded to requests for comment.
Polymarket has had a strong year, having raised $70 million earlier in two rounds, including $45 million from Peter Thiel’s Founders Fund. The report did not specify if the new funding would offer equity or just token warrants, and the company’s valuation remains undisclosed.
Polymarket’s popularity has surged, with August trading volume reaching $472 million. It allows users to bet on various events, but the U.S. presidential election has been the most popular, with nearly $1 billion in bets.
Despite regulatory restrictions blocking U.S. users, some Americans have used VPNs to access the platform. Polymarket’s success has drawn attention from the CFTC, whose chairman, Rostin Behnam, warned of potential legal actions against offshore election-betting platforms that break U.S. laws. Meanwhile, Kalshi, a regulated prediction market, has faced challenges in getting approval to list election contracts due to an ongoing dispute with the CFTC.
