PANews reported on May 14 that Peter Thiel's venture capital firm Founders Fund is betting on one of the largest cryptocurrency prediction markets, Polymarket, despite major U.S. regulators stepping up efforts to restrict activities on such platforms. A Polymarket spokesperson said Polymarket has raised $70 million in two rounds of financing, with the latest round led by Founders Fund, whose backers also include Ethereum co-founder Vitalik Buterin. The platform attracts users to predict the outcomes of various events, with bets on the 2024 U.S. presidential election becoming the most popular contract.
A Polymarket spokesperson said Founders Fund led the $45 million Series B round. General Catalyst earlier helped the company raise $25 million in a Series A round. The new funding values the company at a lower valuation than previously discussed. Before the CFTC action, the company was valued at nearly $1 billion, Bloomberg News previously reported.
According to the Polymarket website, election betting drove the biggest increase in Polymarket activity, with more than $170 million in bets placed on U.S. election-related activities. Polymarket was previously fined by the U.S. CFTC, and as part of a settlement, Polymarket promised to reduce its services in the U.S. and continue to operate overseas.
