2024-05-15
Polymarket, a popular crypto-based betting platform, has secured $70 million in funding from investors including Peter Thiel's Founders Fund and Ethereum co-founder Vitalik Buterin.
This funding comes at a time when the platform is facing increasing regulatory scrutiny in the United States.
Despite the proposed bans by the Commodity Futures Trading Commission (CFTC) on political contest betting, Polymarket is thriving and has raised $70 million in two funding rounds.
The latest Series B funding round, led by Founders Fund, raised $45 million.
Joey Krug, a partner at Founders Fund, commented on the regulatory challenges faced by prediction markets in the US.
He believes that the puritanical thinking about betting is the main reason why some people oppose prediction markets.
However, he sees potential for Polymarket to target non-US markets in the short to mid-term and hopes that Americans will be able to participate in the market in the long run.
This investment by Founders Fund represents their first venture into event-betting contracts, according to Krug.
Polymarket has previously been fined by the CFTC and agreed to reduce its services in the US.
In an effort to improve its relationship with regulators, the platform has appointed former CFTC head J. Christopher Giancarlo as chairman of its advisory board.
Led by founder Shayne Coplan, Polymarket has experienced a surge in betting volume, particularly in relation to the upcoming US presidential elections.
The platform allows users to purchase shares with USD Coin without the need for custody of customer funds.
Despite its current valuation being diminished by regulatory setbacks, which was previously estimated at around $1 billion, Polymarket remains optimistic about the future of prediction markets.
