Polymarket considers launching a token
The decentralized forecasting platform Polymarket is on the hunt for an extra $50 million in fresh funding as it contemplates the idea of rolling out its own cryptocurrency, according to a Monday report from The Information.
Future investors in this fundraising effort are expected to receive token warrants, which grant them the option to acquire tokens should Polymarket opt to introduce them down the line, the publication noted, referencing unnamed insiders.
The specific advantages these tokens might offer within the platform remain uncertain. Polymarket's head honcho, Shayne Coplan, did not respond promptly to inquiries for clarification.
This development comes on the heels of a substantial $70 million the platform secured through two fundraising events this year, snagging $25 million in a Series A spearheaded by General Catalyst and an additional $45 million in Series B financing, which saw involvement from Ethereum's co-founder Vitalik Buterin.
This year, Polymarket has experienced a significant upturn in activity, especially from those eager to speculate on the outcome of the U.S. presidential race, achieving nearly $1 billion in trading volume from those betting on the identity of the next U.S. president.
Operating on the Ethereum and Polygon blockchain frameworks, Polymarket enables users to trade shares based on various potential outcomes of real-life events. Share prices in these prediction markets span from $0.00 to $1, replicating their probability of occurring, essentially their "odds."
Beyond political forecasts, Polymarket's recent uptick in attention can also be attributed to its inclusion of wagers on cultural phenomena, sports events, and more political situations.
Especially this year, the platform witnessed an all-time high in trading volume last month, peaking at $472.8 million, as detailed by one Dune dashboard.
Such success has sparked discussions among Polymarket's user base about the potential introduction of a token to support operational expenses, as the platform currently operates without imposing user fees.
In anticipation of this, traders have begun adjusting their strategies, increasing their trading volumes in the hope of gaining a more substantial part of any potential airdrop rewards, a tactic observed by major players or "whales" within the market.
