Founders Fund, the venture-capital firm headed by Peter Thiel, has made a significant investment in Polymarket, one of the largest prediction markets based on cryptocurrency. This move comes at a time when the US Commodity Futures Trading Commission (CFTC) is ramping up efforts to restrict trading on such platforms. Polymarket has raised a total of $70 million in funding, with the most recent round led by Founders Fund and support from Ethereum co-founder Vitalik Buterin.
The platform has gained popularity among users who predict the outcomes of various events, particularly bets related to the 2024 US presidential elections. However, the recent ban proposed by the CFTC on derivatives trading for political contests and sports games has prompted Polymarket to wind down its services in the US, while still operating internationally. Despite its previous regulatory issues and fine from the CFTC, Polymarket has seen a surge in activity, with over $170 million wagered on US election-related events.
In an effort to establish a more cooperative relationship with regulators, Polymarket has appointed former CFTC chairman J. Christopher Giancarlo as the chairman of its advisory board, following their regulatory settlement in 2022.