Polymarket prediction platform raises $4m with Polychain Capital backing

The Polymarket prediction platform, using an automated market maker (AMM) technology, has attracted $4m in a funding round led by crypto fund Polychain Capital.

I’m proud to announce @PolymarketHQ‘s new $4m fundraise led by @polychaincap + @naval @balajis @1confirmation @rleshner @paraficapital & more

They’ll be joining us on our mission to harness the power of free markets to combat misinformation.

(continued)https://t.co/sC7rpfJ3FF

— Shayne Coplan (@shayne_coplan) October 19, 2020

Investors also included Naval Ravikant, head of AngelList; Balaji Srinivasan, former Coinbase CTO; and Meltem Demirors, CoinShares’ Director of Growth.

The funding will enable the project to move into the second phase of the beta. It is expected that at this stage developers will fix the remaining technical shortcomings and improve the onboarding of new users and trading on the platform.

Any participant on Polymarket may propose ideas for markets—from politics and health to business and science. The administrators guarantee that the specific terms do not permit ambiguous interpretations.

The platform’s creators say that Polymarket participants, through their actions, will help uncover misinformation in the news landscape via what they call “collective knowledge.” Experts can profit from assessments that are more accurate than most.

“One of the key problems with social networks and online discussions is the lack of accountability. Everyone has an opinion, and he is not afraid to share it. The price of a faulty opinion is not high. This year has shown that ordinary people are finding it harder to distinguish fact from fiction,” said Polymarket founder Shayne Coplan in an interview with Coindesk.

According to the publication, in the three months since the beta launch, Polymarket’s trading volume surpassed $1m.

As noted, open interest on Polymarket after the first US presidential debates surpassed $300,000.

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