Polymarket Chief Marketing Officer Matthew Modabber confirmed on Thursday that the company will eventually launch a token, but this initiative will be secondary to the release of the US-facing Polymarket App.
The prediction market platform recently secured a substantial $2 billion investment from Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. This investment occurred in October and valued the company at $10 billion. Modabber elaborated on the prioritization, stating:
“Why rush a token if you need to prioritize the US app? We've been dying for this app for the past five years. A lot has happened because of this, you know, because there's regulatory [issues] and whatnot.”
Prediction markets, including Polymarket and its competitor Kalshi, have gained significant mainstream attention in 2024. This surge in popularity has drawn in individuals who are not typically involved in crypto or blockchain technology into the digital asset space.
Polymarket Valuation Poised for Growth Amidst Strategic Partnerships
Polymarket is currently in discussions to secure additional funding, which could potentially elevate the company's valuation to $15 billion. This potential increase in valuation is supported by the platform's ongoing efforts to establish partnerships with prominent sports organizations, such as the National Hockey League (NHL) in the United States, and with sports book operators.
The company recently entered into an agreement with DraftKings, a well-known sports betting platform. This deal positions Polymarket to provide essential clearinghouse services to DraftKings.
Many sports betting companies, including DraftKings, currently lack the necessary infrastructure to effectively verify trades or manage on-chain collateral. This deficiency can limit their ability to support the substantial trading volumes, potentially reaching billions of dollars, that are characteristic of the prediction market landscape.
Industry Trends and Market Growth in Prediction Platforms
In parallel, the rival platform Kalshi is reportedly in negotiations to raise $300 million. This funding is intended to facilitate the company's expansion into new international markets, with potential reach across 140 countries.
Prediction markets experienced a significant surge in popularity and trading volume during the 2024 US elections. Across various prediction platforms, trading volume increased by over 565% in the third quarter of 2024, notwithstanding the regulatory challenges encountered by this emerging sector.
Industry executives and investors within the crypto space now suggest that prediction markets serve as a more precise indicator of future outcomes compared to traditional expert opinions or polling data. They are viewed as a public good that contributes to the democratization of information access.