Decentralized prediction market platform Polymarket has quietly made a return to the US market, launching a beta version that allows select users to place wagers on real contracts.
Decentralized prediction market platform Polymarket has quietly relaunched in the U.S. in a beta mode. This is after the platform was resolved of an enforcement case with Commodity Futures Trading Commission (CFTC) in the US in 2022. In a recent crypto event, Polymarket Founder Shayne Coplan affirmed that the US platform is operational. The platform is currently passing its last phases before officially being fully opened in the U.S.. This is a very crucial milestone to the company as it is a soft relaunch.
Return is driven by regulatory Compliance and Exchange Acquisition.
The latter allowed Polymarket to re-enter the regulated market in the US since it purchased QCEX earlier this year. QCEX is a company that is CFTC licensed to run an exchange and clearinghouse in derivatives. This is a strategic action after the Justice Department and the CFTC abandoned past inquiries into the crypto betting platform. The previous CFTC enforcement case of 2022 had pushed the company abroad and cost the company a fine of 1.4 million dollars. Nevertheless, the design of Polymarket is structured as a market place, more like an exchange, instead of a casino.
Competition in Prediction market is on fire with the US demand increasing.
The fascination with betting over the real-life events has gone up to a greater extent compared to the last presidential election. Consequently, Polymarket is shifting towards this increasing demand. Its present model is an exchange whereby users are able to place prices and support both sides of an outcome. Kalshi, an existing competitor in the U.S., has served its clients over the years and furthermore, FanDuel also announced intentions to roll out a prediction product in December.
Polymarket has recorded good growth even when it was pushed out abroad, more so during the US presidential election last year. In the previous month, the platform registered the highest record in terms of monthly trading volume and active traders. Nonetheless, in October, its authorized commercial rival in the US, Kalshi, beat Polymarket on the volume of trade.
The successful comeback of Polymarket would be a better ground in the face of mainstream attention of prediction trading. The company is also said to be seeking new money at a valuation of between 12-15billion. In addition, this is after Intercontinental Exchange had announced investments up to the tune of 2 billion.
Native Tokens Speculation Drives market interactions.
After completely restoring its operations in the U.S., the platform is set to launch its own cryptocurrency, POLY, as Chief Marketing Officer Matthew Modabber confirms. As a result, this has seen an increased number of traders who are optimistic to qualify in undisclosed airdrop requirements through their participation in the markets. It was noted earlier that founder Coplan has already mentioned that the token of the project called $POLY might eventually rank among the largest cryptocurrencies in terms of market capitalization.
With the industry becoming a respectable amalgamation of information and finance, Polymarket has grown in power substantially through bringing in key new partners. Moreover, Google Finance declared that it will start displaying real-time data of both Polymarket and Kalshi within the next few weeks. Ultimately, this exposure would assist in normalizing prediction prices by a wider audience. The US presence that has become compliant is considered a massive milestone by the crypto traders.