Polymarket Aims For $50 Million To Launch A New Crypto?

Polymarket, a blockchain-based prediction marketplace, is currently in discussions to raise $50 million in funding. This initiative could precede the potential launch of a new crypto token, a step that could transform its operating model.

Polymarket: a new token to transform the prediction market!

The New York startup, which has already raised $70 million in two previous rounds, is looking to capitalize on the betting fever related to the U.S. elections. Indeed, Polymarket allows crypto users to bet on various global events, including election results, football matches, and even geopolitical tensions.

The token envisaged by Polymarket would serve as a means for users to validate the results of real events. Investors in the proposed funding round would receive warrants allowing them to purchase these tokens if Polymarket decided to issue them. This strategy could offer a new dimension to the crypto platform, enhancing transparency and user trust in the betting outcomes.

Polymarket currently uses the UMA protocol as an oracle service to resolve markets and settle disputes via community votes. It remains unclear whether the new crypto token would replace, complement, or be an alternative to this protocol.

A still complex crypto regulation

The monthly transaction volume on Polymarket reached a record high of $472 million in August, and this month is shaping up to be one of the best with $397 million in transactions recorded so far. This rapid growth highlights the increasing interest in prediction markets and crypto in general.

However, Polymarket must also navigate a complex regulatory landscape. The platform blocks crypto users with U.S. IP addresses due to a regulatory settlement, although some American traders have circumvented this restriction by using VPNs.

Polymarket’s quest for $50 million and the potential launch of a token represent major developments for the platform. These initiatives could not only strengthen its position in the prediction market but also offer new opportunities for users and crypto investors.