According to PANews, Peter Thiel's venture capital firm, Founders Fund, is betting on one of the largest cryptocurrency prediction markets, Polymarket, despite increased restrictions on such platforms by major US regulators. A spokesperson for Polymarket stated that the platform has raised $70 million through two rounds of financing, with the most recent round led by Founders Fund. The platform's supporters also include Ethereum co-founder Vitalik Buterin. The platform has attracted users to predict the outcomes of various events, with bets on the 2024 US presidential election becoming the most popular contract.
The Polymarket spokesperson also revealed that Founders Fund led a $45 million Series B financing round. Earlier, General Catalyst had helped the company raise $25 million in a Series A round. The new funding values the company below the levels previously discussed. Prior to action by the CFTC, the company's valuation was close to $1 billion, according to previous reports by Bloomberg.
Polymarket's website states that election betting has driven the largest growth in Polymarket activity, with bets related to the US election exceeding $170 million. Polymarket has previously been fined by the US CFTC and, as part of a settlement agreement, Polymarket has pledged to reduce its services in the US and continue to operate overseas.