Polymarket is on the verge of closing a $200M funding round

Polymarket is coming to the forefront with a potential unicorn valuation. The prediction site is reportedly close to a $200M financing deal that will put its value at $1B. 

Polymarket is on the verge of a $200M financing round that will give the company a unicorn valuation of $1B. According to reports by The Information and Reuters, Polymarket will finally enter price discovery after years of existing as a tokenless platform. 

The round will be led by Peter Thiel’s Founders Fund and will be one of the larger raises in the past few months. Thiel is already involved with Polymarket and has mentioned prediction platforms in relation to his data analytics company, Palantir. Thiel first invested in the platform in May 2024, along with Ethereum’s founder, Vitalik Buterin. Thiel has also mentioned prediction markets as a source of data and accurate information on current events.

The new funding round will follow a previous raise of $74M led by Polychain Capital. 

The Polymarket fundraising round follows the recent preparation for a Pump.fun token sale, which aims to raise $1B at $4B valuation. For some, Polymarket has a bigger potential than the meme platform and may achieve an even higher valuation if it launches a token. The announcement may increase Polymarket volumes, in expectation of tying token allocation to activity.

Polymarket, however, remains even more valuable as the go-to platform for current events, breaking news, and political predictions. Polymarket has also announced a partnership with X, giving the platform even larger mainstream exposure. 

Polymarket mindshare peaks

Polymarket became the talk of social media, especially crypto-affiliated yappers. Based on the Kaito leaderboard, the platform was the most rapidly trending among tokenless protocols. Polymarket received the most talk and social media messaging among pre-TGE projects.

Polymarket surpassed other projects that are yet to announce a token generation event. Previously, the platform has hinted that it would reward its customers. The prediction site saw an outflow of users following the end of the US elections in November 2024, but briefly posted a message to users not to leave the site. Months later, Polymarket is still undecided about an eventual token or an airdrop. 

In the past few months, Polymarket users retained a lower baseline, mostly hinging on small bets under $100. Despite this, the platform gained wider mainstream acceptance, with quotes on event resolution appearing in mainstream media. 

The betting market also immediately reacts to current news, evolving its most active markets. While sports bets remain a staple, the Polymarket influence is mostly tied to current news and events. 

For some, Polymarket is a crowdsourcing mechanism, while others are skeptical and point to some of the illiquid, easy-to-manipulate prediction pairs. Some of the markets remain extremely volatile, fluctuating by up to 50% in minutes depending on current events. 

The prediction market on whether Iran would close the Straits of Hormuz was one of the pairs closely watched to determine the direction of oil prices. Within hours, the probability was down from 50% to 2%, reflecting the rapidly changing conditions.

However, Polymarket has shown itself to be more reliable compared to other on-chain betting sites. The platform has few competitors, including the much less liquid Kalshi.

Google Trends reveals a general interest in Polymarket, boosting searches from virtually non-existent to 100 points in the span of two weeks. 

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