Polymarket, the cutting-edge crypto-native prediction platform established in 2020, is said to be in the process of organizing talks with investors to raise additional funds. Unnamed sources revealed this news to Bloomberg, pegging Polymarket’s potential valuation between $12 billion and $15 billion.
A Brief on Polymarket
Polymarket is a hub for those interested in predicting various outcomes in numerous fields. Its users can speculate on yes/no outcomes on multiple topics ranging from politics and sports to markets and culture. It’s essentially a betting platform with a twist. Since its inception in 2020, Polymarket has stirred a sensation, quickly becoming an attractive platform for those looking for a unique way to carve out potential profits.
Previous Funding Rounds and Valuations
The company has witnessed a dramatic increase in valuation in its recent history. Less than a year ago, Polymarket had a valuation of $1.2 billion following a fundraising round in June that saw Peter Thiel’s Founder’s Fund lead a hefty $150 million investment. Just a few months later, Polymarket’s valuation skyrocketed to $9 billion after it was reported that the Intercontinental Exchange, mother company of the New York Stock Exchange, agreed to invest a whopping $2 billion in the prediction market platform. This enormous deal catapulted Polymarket founder and CEO Shayne Coplan to the enviable status of one of the youngest self-made billionaires.
Rivalry with Kalshi
However, the prediction market race is far from a one-horse run. Polymarket’s rivalry with competitor Kalshi continues to heat up. Just like Polymarket, Kalshi too has seen its valuation grow exponentially in recent months. Interestingly, less than two weeks after a significant funding round that raised over $300 million at a $5 billion valuation, Kalshi is reportedly fielding investment offers with a valuation of between $10 billion and $12 billion. According to Bloomberg, the trading volume for both platforms has been soaring, suggesting an escalating tussle for supremacy in the market.
Polymarket’s Growing Success
Polymarket has had a rather successful run in recent months. The Polygon-based platform recently broadened its deposit support options, adding bitcoin to the list that already includes tokens across the Ethereum, Polygon, Base, Arbitrum, and Solana ecosystems. Moreover, it launched equity and index markets where users can bet on whether a stock or benchmark will finish higher or lower by a particular time.
Expansion Plans and Re-entry into the U.S Market
Perhaps Polymarket’s most exciting development is its plan to re-enter the U.S market. After a pause in operations in the country in 2022 due to regulatory uncertainty, CEO Shayne Coplan confirmed the prediction market platform has been ‘given the green light’ to resume operations. The much-anticipated reintroduction could prove to be a primary boost for Polymarket’s market stake in the near future.
In addition to the resumption of activities in the U.S., Polymarket also revealed a potential development of a POLY token, which could add another dimension to its operation and provide more flexibility for users on its platform.
New Agreements and Partnerships
More growth is on the horizon for Polymarket. The platform announced that it will serve as the designated clearinghouse for DraftKings if the fantasy sports giant decides to debut a prediction market following an acquisition. Furthermore, the NHL has reportedly reached licensing agreements with Polymarket and its rival Kalshi, marking a significant step into the mainstream betting space for both.
The overall progress and rapid growth of Polymarket underline the increasing acceptance and adoption of decentralized financial applications. It’s an exciting era, and it will be interesting to note how this narrative unfolds in the coming years.
