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Polymarket, a blockchain-based prediction market platform, is currently in discussions to raise $50 million in funding. This initiative could precede the potential launch of a new crypto token, a move that could change its operating model.
Polymarket: a new token to transform the prediction market!
The New York start-up, which has already raised $70 million in two previous rounds, is trying to capitalize on the betting fever associated with the American elections. Indeed, Polymarket allows cryptocurrency users to bet on various global events, including election results, soccer matches, and even geopolitical tensions.
The token that Polymarket envisions would serve as a way for users to verify the results of real events. Investors in the proposed round will receive warrants that will allow them to purchase these tokens if Polymarket decides to issue them. This strategy could offer a new dimension to the crypto platform by enhancing transparency and user confidence in betting results.
Polymarket currently uses the UMA protocol as an oracle service to resolve markets and resolve disputes through community voting. It is not yet clear whether the new cryptotoken would replace, supplement or be an alternative to this protocol.
Crypto regulation is still complex
Monthly trade volume on Polymarket hit an all-time high of $472 million in August, and this month is shaping up to be one of the best ever with $397 million in transactions. This rapid growth highlights the growing interest in predictive markets and crypto in general.
However, Polymarket also has to navigate a complex regulatory environment. The platform blocks cryptocurrency users with US IP addresses due to a regulatory rule, although some US traders have circumvented the restriction by using a VPN.
Polymarket’s $50 million bid and potential token launch represent major developments for the platform. These initiatives could not only strengthen its position in the prediction market, but also provide new opportunities for cryptocurrency users and investors.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.