Polymarket is reportedly looking to launch a token amid talks of raising $50 million in new funding, according to The Information .

According to the report, the decentralized marketplace might offer investors warrants for future token purchases as part of this round. However, if the token plan goes ahead, it’s uncertain whether investors will receive equity, token warrants, or a combination of both.

In the meantime, the token is said to allow users to verify outcomes of real-world events. It is unclear whether the token will replace or enhance the platform’s existing use of the UMA Protocol, which relies on community votes to determine market outcomes.

This recent funding follows a previous total investment of $70 million in funding rounds that included billionaire investor Peter Thiel’s Founders Fund and Ethereum co-founder Vitalik Buterin .

Polymarket’s success

Since launching on the Ethereum layer-2 network Polygon in 2020, Polymarket has emerged as a leading crypto product. Over the past year, the platform has enjoyed significant growth thanks to its role in the upcoming US elections .

It's noteworthy that Polymarket has even caught the attention of major media outlets like CNN and Bloomberg, which incorporate the platform into their reporting.

This remarkable success has propelled Polymarket to surpass $400 million in trading volume this September, registering over 65,000 monthly active traders, according to Dune Analytics data . It has since exceeded $1 billion in volume.

However, this success has drawn regulatory attention . The Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam reportedly stated that the commission was “monitoring any activity” on offshore election-betting platforms that exposed US customers to risk.

Potential airdrop

News of the potential token launch has led to speculation that Polymarket may distribute tokens to its early users.

Traders have reportedly been increasing their trading activity, hoping to secure a larger share of the potential airdrop rewards.

Popular airdrop enthusiast CC2Ventures mentioned :

“[Polymarket] has the potential to become one of the biggest airdrops in history due to its product-market fit and widespread recognition, especially if: The initial Snapshot has already been taken Even multiple stages of distribution would be acceptable, as long as early adopters who participated in the protocol ‘before it was widely known’ have already received their fair share of incentives.”