Peter Thiel’s venture capital firm, Founders Fund, and Vitalik Buterin, co-founder of Ethereum, have taken the lead in raising $70 million for Polymarket, a platform that allows betting on political events. As reported by Bloomberg, Polymarket has successfully completed two funding rounds, with the latest Series B round raising $45 million.
Despite the proposed bans on political contest betting by the Commodity Futures Trading Commission (CFTC), the crypto-based prediction market continues to thrive. In response to the ban proposal, Joey Krug, a partner at Founders Fund, stated that this investment marks their first venture into event-betting contracts.
Polymarket has faced regulatory challenges in the past, leading to fines by the CFTC and a reduction in its services within the United States. However, in an effort to improve its relationship with regulators, the platform has appointed J. Christopher Giancarlo, former head of the CFTC, as chairman of its advisory board.
With the upcoming U.S. presidential elections drawing near, Polymarket has witnessed a significant increase in betting volume. The platform allows users to purchase shares using USD Coin (USDC), without the need to hold customer funds.
Under the leadership of 25-year-old founder Shayne Coplan, Polymarket has experienced a surge in electoral betting, resulting in over $170 million in wagers placed on the upcoming elections, according to the platform’s website. Despite the recent successful funding rounds, regulatory setbacks have affected Polymarket’s current valuation, which was previously estimated at approximately $1 billion.