This move comes shortly after the project successfully raised $70 million in May 2024, including $45 million from major investors like Peter Thiel’s Founders Fund and other prominent figures.
According to The Information, Polymarket is attracting investor interest by offering the promise of token purchase rights, in case the company decides to issue its token. However, Polymarket has not yet made an official decision on whether to launch a token, and there is no guarantee that this will happen in the future.
If issued, Polymarket’s token would serve to verify the outcomes of real-world events on the platform, enhancing transparency and reliability. Currently, Polymarket uses the UMA protocol to resolve disputes through community voting. It remains unclear whether the new token would replace UMA or operate alongside it.
The year 2024 marks a significant rise for Polymarket, particularly amid the intense U.S. presidential election. The platform has attracted nearly $1 billion in bets, with events related to candidates Donald Trump and Kamala Harris dominating the market. Bets are executed via smart contracts on the Polygon blockchain and settled in USDC, a stablecoin pegged 1:1 to the U.S. dollar.
According to data from The Block, Polymarket’s trading volume reached $1.9 billion by September 2024, a record figure that demonstrates the platform’s rapid growth. However, Polymarket still faces a major revenue challenge as it has yet to charge user fees. Founder Shane Coplan has indicated that the platform may start charging fees in the future.
Polymarket is poised for further expansion with its plan to raise an additional $50 million, as interest in prediction markets continues to grow. The potential issuance of its own token, if realized, could be a significant step forward, positioning Polymarket even further in the competitive crypto market.
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