|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Polymarket Seeks $50M to Fund Operations, Reportedly Plans to Issue Token
Sep 24, 2024 at 06:07 pm
The prediction site could use the tokens as a way for users to validate the outcome of real-world events
Web3 prediction market platform Polymarket is reportedly seeking $50 million in fresh funding, an endeavor that could see investors acquiring token warrants.
The development was reported by The Information on Sept. 23, with the publication adding that investors backing the round would also receive the right to purchase tokens if Polymarket proceeds with the issuance.
According to The Information’s anonymous sources, the prediction site could use the tokens to enable users to validate the outcome of real-world events.
Currently, Polymarket leverages UMA’s Optimistic Oracle (OO), a system used to resolve disputes and validate real-world outcomes. Contracts on Polymarket can request data from the OO, which then supplies an outcome. However, if this result is disputed, the case escalates to UMA’s Data Verification Mechanism (DVM), through which UMA token holders vote on the correct outcome.
Should Polymarket proceed with its token launch, the new token could integrate into this process, potentially supplementing or replacing its reliance on UMA by bringing dispute resolution in-house.
As of press time, Polymarket did not respond to The Defiant’s request to comment on the matter.
The report of Polymarket’s plan to introduce a token comes against the backdrop of an increasing number of disputes between Polymarket and UMA’s event resolution mechanisms.
In June, tensions between Polymarket and UMA erupted when a prediction market regarding Barron Trump’s alleged involvement in the creation of a meme coin called DJT stirred controversy.
Initially, UMA’s oracle system resolved the market in favor of the "no" side, but Polymarket later overruled this decision, asserting that Barron Trump was involved "in some way." Polymarket said it would refund holders of the "yes" contract, despite UMA’s majority vote favoring the opposite outcome.
According to the market’s terms, UMA token holders voted multiple times, rejecting the claim that Barron Trump had any involvement with the DJT token. However, Polymarket stepped in, indicating the platform believed the oracle got it wrong.
A similar incident occurred in May when Polymarket bettors challenged UMA’s resolution regarding a spot Ethereum exchange-traded fund (ETF), which UMA found to have been approved despite the funds remaining under review by the SEC.
Meanwhile, the news of Polymarket’s funding round comes as the platform is enjoying a surge in activity amid a frenzy of betting on the 2024 U.S. presidential election.
As of September, Polymarket users have placed a total of $993.1 million worth of bets on who will win the presidency, alongside $223.6 million on the popular vote market.
The platform has posted new all-time highs for trade volume and users for the past four consecutive months. In August, the platform hosted $472.9 worth of predictions from 63,616, marking year-over-year volume and user increases of 5,900% and 2,985% according to Dune data compiled by Richard Chen.
Polymarket’s momentum has continued to grow throughout September, with the platform posting record daily volume of $37.3 million on Sept. 11 and hosting an all-time high of 12,649 daily users on Sept. 18. Over the past seven days, election markets accounted for 86% of volume and 74% of users.
However, Polymarket’s success is also drawing increased scrutiny from U.S. regulators.
On Sept.18, Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), raised concerns about Polymarket potentially offering services to U.S. residents without proper registration.
“If anyone, Polymarket or otherwise, conducts themselves in a way that breaks the law, we will use our civil enforcement authority to make sure that conduct stops,” Behnam said.
In January 2022, the platform settled with the CFTC for $1.4 million after allegedly offering more than 900 event-based binary options markets without the required registrations. Following the settlement, Polymarket restricted access for users with U.S. IP addresses, though reports indicate that some American traders continue to bypass these restrictions by using VPNs to place bets.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Dogecoin (DOGE) vs GoodEgg (GEGG): Which Meme Coin Will Outperform in 2024?
- Sep 25, 2024 at 12:25 am
- For years, Dogecoin (DOGE) has been the king of meme coins, capturing the hearts of millions with its playful Shiba Inu mascot and the support of
-
- The Open Art (TONX) – A Night Where Innovation Meets Freedom of Expression
- Sep 25, 2024 at 12:25 am
- The Open Art, hosted by Blum, TONX, and TON Society during Token2049, is an event where attendees get to immerse in a night where innovation meets freedom of expression.
-
- Lunex (LNEX) Network: A Revolutionary DeFi Protocol Connecting All Isolated Blockchains into One Non-Custodial Exchange
- Sep 25, 2024 at 12:15 am
- The crypto market has several DeFi exchanges like Uniswap and PancakeSwap, but none of these allow users to exchange cryptos across different blockchains.
-
- SUI and AVAX Surges After the Fed Rate Cut: What's Next?
- Sep 25, 2024 at 12:15 am
- The recent Federal rate cut, which many people take for bad news, was actually a blessing in disguise for cryptos such as Sui (SUI) and Avalanche (AVAX).
-
- Ripple (XRP) Price Prediction: Can XRP Deliver an Explosive Price Gain Soon?
- Sep 25, 2024 at 12:15 am
- A closer look at the crypto market reveals the immense gains many digital assets have delivered in preparation for the year's final quarter.
-
- ALEO Airdrop is Live — Claim Your Free Tokens!
- Sep 25, 2024 at 12:15 am
- Claiming your blockchain ALEO tokens is easy! Just adhere to these quick steps and start using your tokens immediately.
-
- Malone Lam is trending, this time as a hot meme that has risen to become one of the top trading pairs on decentralized exchanges
- Sep 25, 2024 at 12:15 am
- According to on-chain data, the Malone/Solana (SOL) trading pair on the Raydium DEX skyrocked more than 1,000% in 24 hours.
-
- Genesis Global Transfers 5,000 ETH to FalconX Amidst Bankruptcy Proceedings
- Sep 25, 2024 at 12:15 am
- A wallet belonging to the bankrupt crypto lender Genesis Global has transferred 5,000 Ethereum (ETH) worth $13 million to a deposit address belonging to FalconX.