Polymarket, the controversial prediction platform, is reportedly closing a huge funding round. Sources indicate it could raise $200 million very soon. This massive injection would value the company near $1 billion. Peter Thiel’s powerhouse venture firm, Founders Fund, is leading the charge. Reuters and Bloomberg both confirmed the talks Tuesday. This potential deal defies Polymarket’s significant legal hurdles.
Notably, achieving “unicorn” status seems remarkable given its US ban. American users cannot legally access the platform. Furthermore, the FBI executed a search warrant last November. Agents seized electronics from founder Shayne Coplan. Authorities investigated potential US user access violations. Nevertheless, investors appear undeterred.
What Exactly is Polymarket?
Simply put, Polymarket lets users bet on future events. People wager using cryptocurrency on diverse global outcomes. Will Israel strike Iran again? Might the US face recession in 2025? Could a Russia-Ukraine ceasefire happen by July? Users predict Federal Reserve moves and even New York City’s mayoral primary.
The platform experienced explosive growth during the 2024 US election. Trading volume rocketed past $2.5 billion that November. Bettors eagerly speculated on the presidential result and other major events. Currently, it shows an 87% chance the stablecoin GENIUS Act passes this year.
Billions in Bets
Polymarket boasts impressive scale despite its controversies. Its analytics show around 1.2 million active traders worldwide. Moreover, users have placed roughly 20 million open positions.
There are currently 21,000 distinct betting markets available. Recent monthly volume sits near $700 million. Dune Analytics provided a slightly different May snapshot. It recorded approximately $1.1 billion in trades that month. While substantial, this marked a significant 56% drop from November’s $2.5 billion peak. Clearly, election fever drove unprecedented activity.
Also read: Crypto Exchange OKX Targets Wall Street Listing Following U.S. Re-entry
Global Blockades and Backlash
Operating globally brings major regulatory headaches. Besides the US ban, France also blocks Polymarket. Singapore, Thailand, Taiwan, Poland, and Belgium have restrictions too. The platform faces additional scrutiny over potential manipulation.
Critics allege possible outcome interference in some prediction markets. Competitors like Kalshi, backed by Y Combinator and Sequoia, challenge its dominance. Kalshi operates under a regulated framework. Polymarket fights these battles while pursuing massive growth.
Capital Drives Aspirations
This new cash follows a key strategic partnership. Polymarket teamed up with Elon Musk’s X platform in early June. Together, they aim to blend prediction markets with Grok AI analysis.
Polymarket previously secured over $100 million. Reports include an undisclosed $50 million investment earlier in 2025. Now, Thiel’s Founders Fund signals strong continued confidence. If finalised, this $200 million round cements Polymarket’s place as a crypto heavyweight. It achieves this despite operating in a persistent regulatory storm. The world watches its next risky bet.
Written By Fazal Ul Vahab C H
