Polymarket Seeks $50 Million Funding Amid U.S. Election Betting Surge

According to CoinDesk, crypto-based prediction market platform Polymarket is aiming to raise $50 million in new funding. The New York-based startup is also contemplating issuing its own token, with investors in the proposed round potentially receiving warrants to buy these tokens if the issuance plan proceeds. The token would serve as a means for users to validate the outcomes of real-world events. It remains unclear whether this token would supplement, replace, or serve as an alternative to UMA Protocol, the oracle service Polymarket currently uses to resolve markets and adjudicate disputes via community votes. Polymarket describes itself as oracle agnostic in its documentation. Neither Polymarket nor UMA responded to CoinDesk's request for comment. In May, Polymarket announced it had raised a combined $70 million over two rounds, including a $45 million Series B led by billionaire Peter Thiel's Founders Fund. The Information article did not specify whether investors in the proposed $50 million round would receive equity or just token warrants, nor did it mention Polymarket's valuation. Polymarket has emerged as a significant player in the prediction market and crypto sectors this year. Bets on the platform are programmed into smart contracts on the Polygon blockchain and settled in USDC, a token that trades 1:1 for dollars. Monthly volume on Polymarket reached an all-time high of $472 million in August, with $397 million in trades recorded as of Monday this month, according to Dune Analytics data. The U.S. presidential election remains the most popular betting subject, with nearly $1 billion staked. Due to a regulatory settlement, Polymarket blocks users with U.S. IP addresses, although some American traders reportedly bypass this restriction using VPNs. Polymarket's success has been a contentious issue for Kalshi, a regulated prediction market embroiled in a legal battle with the U.S. Commodity Futures Trading Commission (CFTC) over listing contracts on congressional control. The CFTC is considering a rule that would ban election event contracts on all exchanges under its jurisdiction, potentially shifting regulation to the states. CFTC Chairman Rostin Benham recently stated that the agency is monitoring offshore election-betting platforms providing exposure to U.S. customers. He emphasized that any entity, including Polymarket, found breaking the law would face civil enforcement actions to halt such conduct.