According to the report by The Information, citing anonymous sources, Polymarket aims to raise $50 million in fresh capital in this financing round and is considering issuing a token that can be used to verify the results of real-world events.

Founded in 2020, Polymarket has emerged as a major player in the prediction market space this year. Polymarket, whose smart contracts run on the Polygon blockchain, offers its users the opportunity to bet on the outcomes of various events.

While bets can be made on a wide range of topics, from sports events to geopolitical developments, the US presidential elections in particular attracted great attention. Almost $1 billion was bet on the 2020 elections, which shows how much potential the platform has.

According to data from DeFi Llama, Polymarket currently has more than $121 million in total locked value. The platform’s growth accelerated with its presence in major media outlets such as Bloomberg and CNN.

In particular, Bloomberg helped the platform reach a wide audience by integrating Polymarket data into its election terminals. This situation attracted attention as an important development that accelerated the growth of the platform.

Polymarket plans to offer investors warrants for future token purchases. However, it is not yet clear whether investors will receive shares, token warrants, or both at the end of this financing round.

According to sources, the potential token issued by the company could be used to verify users’ results of real-world events. However, details on how this token will work have not yet been announced.

It also remains unclear whether this token will replace or complement Polymarket’s UMA Protocol, which currently resolves market outcomes through community voting.

Polymarket raised a total of $70 million in two financing rounds in 2023. The largest of these rounds was a $45 million Series B financing round led by Founders Fund, the venture capital firm founded by billionaire entrepreneur Peter Thiel. This growth strategy of the company creates significant potential, especially in the US market.

But Polymarket’s expansion plans are also being tested by US regulators’ tough stance on election betting contracts.

US Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam warned that legal action could be taken against platforms offering offshore election betting to US customers. It was announced that platforms that violate US laws will face criminal sanctions.

Currently, Polymarket is closed to users in the US. Due to an agreement made with the CFTC in 2022, US users cannot access the platform. However, some reports suggest that American users are bypassing these restrictions by using a VPN. This could further complicate the platform’s plans to expand its operations in the US.

As the on-chain prediction market continues to grow, cryptocurrency market maker Wintermute plans to launch a new multi-chain platform called OutcomeMarket focused on the US elections. This development shows that competition in the on-chain prediction market may increase and new projects can quickly take place in this field.

Polymarket’s potential token launch and expansion strategy could strengthen the platform’s leading position in the prediction market, but the attitude of US regulators towards the platform will be decisive in this process.