Blockchain-based prediction platform, Polymarket, is in the process of launching its own token to enhance the operation of its prediction market, as reported by The Information. 

The potential token launch comes as the company is in discussions to raise over $50 million in new funding. While nothing is set in stone, The Information sources suggest that Polymarket’s new round of funding and token launch could be one of the most significant developments in the crypto space since the market’s recovery from the 2022 collapse.

Investors participating in this funding round are expected to receive token warrants, which would allow them the option to buy tokens if Polymarket decides to proceed with the launch.

The use of the token could go beyond traditional prediction markets. Sources have hinted that these tokens might be utilized to validate the outcomes of real-world events.

Growing Popularity and Past Success

Polymarket has been steadily gaining popularity in the blockchain and crypto space, especially with its approach to prediction markets. Built on both Ethereum and Polygon, Polymarket allows users to buy and sell shares in the outcome of future events, using crypto as a medium. 

The platform has seen nearly $1 billion in trade volume, especially around the upcoming U.S. presidential election. 

Earlier this year, the platform secured $25 million in a Series A round led by General Catalyst.  This was followed by the aforementioned $45 million Series B round led by Peter Thiel’s Founders Fund. Ethereum co-founder Vitalik Buterin and firms like 1confirmation and ParaFi also participated in the round. 

Surging Market Activity

Polymarket's success is reflected in its growing user base and volume. According to Dune Analytics, the platform saw a monthly volume of $472 million in August and nearly $405 million in September. As of this month, there were around 65,210 active traders on the platform, showing strong user engagement and demand.

The excitement surrounding Polymarket continues to build, especially with the U.S. presidential election nearing. According to Polymarket, Kamala Harris leads the betting pool with an estimated 50% chance of winning the 2024 US elections.