Polymarket is reportedly in talks to raise over $50 million in new funding, which is likely tied to a potential token launch, first reported by The Information.

Polymarket explores token launch amid $50 million fundraising talks pic.twitter.com/hKLY46Covg

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The blockchain-based prediction market has gained popularity as a platform for betting on high-profile events like US elections, federal rate cuts, the Super Bowl, and, most recently, whether FTX’s Caroline Ellison will be sentenced to prison.

Polymarket allows users to wager on the outcomes of a wide variety of scenarios, from political elections to pop culture phenomena, all powered by blockchain tech.

Polymarket is also considering a token launch worth more than $50 million to help operate its crypto betting platform, according to The Information, which cites anonymous sources.

As noted in the report, investors in the round will receive token warrants, which grant them the right to purchase tokens if Polymarket launches them at a later date. Sources also suggested that these tokens could be used to validate the outcome of real-world events. However, no final decision has been made on the token launch, and there is no guarantee it will happen.

In addition to these token launch plans, Polymarket raised $45 million in a Series B funding round earlier this year, led by Peter Thiel’s Founders Fund, with participation from 1confirmation, ParaFi, and Ethereum co-founder Vitalik Buterin, among others.

Polymarket has attracted nearly $1 billion in wagers on who will win the upcoming US presidential election, further solidifying its place as a key player in the decentralized prediction market. According to the platform, Vice President and Democratic candidate Kamala Harris currently leads the betting pool with an estimated 50% chance of winning.

Polymarket’s unique approach to prediction markets has quickly attracted both the crypto community and mainstream investors. Founded in 2020 by CEO Shayne Coplan, the platform allows users to buy and sell shares using crypto tokens to bet on future events.

However, recent comments by CFTC Chair Rostin Behnam raised concerns about offshore platforms serving US customers. He emphasized the need for Polymarket and others to operate legally and within regulatory boundaries. These comments may draw new attention from the CFTC to Polymarket’s potential token launch, increasing regulatory scrutiny.