Decentralized prediction market platform Polymarket is considering issuing tokens to raise more than $50 million in new funds to help operate its platform, The Information reported, citing people familiar with the matter.
According to people familiar with the matter, investors participating in this round of financing will receive token warrants that give them the right to purchase tokens when Polymarket issues them in the future. Polymarket may use the tokens as a way for users to verify the results of real-world events, one of the people said.
According to reports, Polymarket has not made a decision on the token issuance and there is no guarantee that it will be issued.
In May this year, Polymarket completed a $45 million Series B round of financing, led by Founders Fund, a venture capital firm co-founded by Peter Thiel. Other investors included 1confirmation, ParaFi, Dragonfly, and Vitalik Buterin, co-founder of Ethereum. and Eventbrite co-founder Kevin Hartz.
Polymarket was founded in 2020 by CEO Shayne Coplan, and the prediction market has become a high-profile topic in the cryptocurrency space over the past year. The platform allows people to buy and sell shares using crypto tokens, betting on the likelihood of future events.
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