Polymarket considers raising over $50 million and token launch: report

Polymarket is considering both raising more than $50 million in fresh capital and a token launch that could potentially help it operate its crypto betting platform, according to The Information, which cited anonymous sources. 

"Investors in the round will receive token warrants, which grant them the right to purchase tokens if Polymarket launches them at a later date," the report said, attributing the sources. "The prediction site could use the tokens as a way for users to validate the outcome of real-world events, one of the people said. Polymarket has not made a decision regarding tokens and there’s no guarantee of a launch."

In May, Polymarket raised $45 million in a Series B funding round led by Peter Thiel’s Founders Fund and existing investors 1confirmation and ParaFi, with participation from Ethereum co-founder Vitalik Buterin, Dragonfly and Eventbrite’s co-founder Kevin Hartz.

The decentralized prediction platform Polymarket has attracted nearly $1 billion in wagers for who will win the upcoming U.S. presidential election. Vice President and Democratic candidate Kamala Harris currently leads the way with an estimated 50% chance of winning, according to the platform.

Polymarket was founded in 2020 by CEO Shayne Coplan. During the past year, the platform has emerged as a compelling narrative within crypto. The platform allows people to buy and sell shares using crypto tokens as they bet on the likelihood of future events taking place.

Update: Corrected to reflect The Information reported that the potential raising of more than $50 million in new equity is separate from the possible token launch.