Polymarket Pursues $50M Funding Round: Potential Token Launch On The Horizon

By: Eliza Bennet

Polymarket, a decentralized marketplace, is reportedly aiming to raise $50 million in new funding, amid ongoing discussions about a prospective token launch. This move could involve offering investors warrants for future token purchases, though the specifics of whether investors will receive equity, token warrants, or both remain unclear.

The potential token could serve a vital role in verifying real-world event outcomes. It is also yet to be determined if the new token will replace or complement Polymarket's existing use of the UMA Protocol, which currently resolves market outcomes through community voting.

This fundraising effort aligns with the company's history of strong financial backing, including previous rounds that raised a total of $70 million. These rounds featured high-profile investors such as billionaire Peter Thiel’s Founders Fund and Ethereum co-founder Vitalik Buterin.

Polymarket's Success

Since its launch on the Ethereum layer-2 network Polygon in 2020, Polymarket has established itself as a leading platform in the crypto space. Over the past year, it has seen tremendous growth, in part due to its involvement in the highly-watched U.S. elections.

The platform has also attracted attention from major media outlets such as CNN and Bloomberg, which have integrated it into their coverage. As of September, Polymarket has surpassed $400 million in trading volume and has reported more than 65,000 monthly active traders, according to Dune Analytics data. The platform has now exceeded $1 billion in trading volume.

However, its rapid growth has also drawn the attention of regulators. The Commodity Futures Trading Commission (CFTC) Chair, Rostin Behnam, has noted that the commission is “monitoring any activity” on offshore election-betting platforms that might pose risks to U.S. consumers.

Potential Airdrop

News of a potential token launch has led to speculation regarding a possible airdrop to early users of the platform. Traders have been increasing their activity, hoping to secure a larger share of any possible airdrop rewards.

Popular airdrop farmer CC2Ventures commented on the rumor, stating, “Polymarket could potentially be one of the fattest airdrops in history given their PMF and mindshare. Even multiple seasons would be fine, as long as early adopters who used the protocol ‘before it was obvious’ have already received their share of incentives.”