Polymarket is the largest decentralized social guessing protocol, with over $1.3B traded over the past three months, implementing the tokenization of each bet on its platform. It enables users to bet on potential outcomes of listed events on the platform and trade those bets, represented in the form of tokens or shares.
Since its inception in 2020, the Polymarket crypto project has raised over $74M from top-tier investors such as Vitalik Buterin, Dragonfly Capital, Polychain, and others.
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What is Polymarket? 🤔
Polymarket is a social prediction protocol focused on producing more robust and stable insights on matters most important to society. It enables users to bet on the potential outcomes of various significant societal events by purchasing or shorting tokenized bets. The more people buy or sell shares of these bets, the higher or lower Polymarket displays the likelihood of a specific outcome occurring.
This feature provides users with access to a new range of opportunities, allowing them to profit not only from predicting outcomes but also from probability fluctuations by trading tokenized bets through market and limit orders.
How does Polymarket work? ⚙️
On Polymarket, when users forecast a specific outcome for an event, they can buy or sell shares. The price of these shares directly reflects the probability of the event, and it cannot be higher than 100 or lower than 1. The more people buy shares, the higher the price of the share becomes, which subsequently increases the perceived probability of the specific outcome on Polymarket. Once the event concludes and the protocol confirms the outcome, shares tied to the correct prediction become worth 100 cents, while shares linked to the wrong prediction become worthless.
✍️ Example:
Let’s say you are betting on whether Bitcoin will reach $100K tomorrow. Initially, the probability of this event was considered 50/50, but most users didn’t believe in such an outcome. As a result, 95% sold their shares, while only 5% bet that Bitcoin would achieve $100K by tomorrow.
Now, let’s assume you also believed in this outcome and purchased 2,000 shares worth $100 at a price of $0.05 per share. Suddenly, Bitcoin hits $100K, as you predicted. Now, each share is worth $1, and your total position is valued at $2,000, meaning you made a profit of over $1,900 from your bet. However, if you hadn’t guessed the Bitcoin price movement correctly, your shares would become worthless, and you would lose your entire bet.
This innovative approach to decentralized betting has established Polymarket as a robust resource for gauging public opinion on specific events, and leading on-chain betting protocol. It has been featured multiple times in CNN, Forbes, Cointelegraph, CoinDesk, and other media outlets. These media outlets consider the Polymarket polls to be a more reliable source of information than traditional polls, as users who influence the platform's statistics are betting their money and are more confident in their opinions on specific events.
🪙 Polymarket token: In September 2024, the Polymarket betting protocol has announced plans to fundraise an additional $50M to launch its native token. According to the Crypto Briefing, the Polymarket crypto coin will be used to validate the outcome of real-world events and also most likely will be the main tool to vote on governance proposals.
Currently, there is no active growth marketing campaign that may indicate an upcoming token release or Polymarket airdrop. However, the CoinLaunch team decided to preventively conduct research on the Polymarket crypto project to find out its most notable pros and cons:
âś… Polymarket pros:
❌ Polymarket cons:
Polymarket is an information markets platform that allows users to bet on the likelihood of the world’s most discussed events. To bet on event outcomes, users buy or sell shares priced between 1 and 10. “Buying” shares indicates a belief that the event will occur, with the share price determined by the trading activity of other users. If the event occurs, “buy” shares become worth 100, while “sell” shares become worthless, rewarding users who predicted the outcome correctly. The exact opposite applies to “selling” shares.
Recently, the company announced plans to raise an additional $50M and launch its native token, potentially hinting at an upcoming retrodrop for its users. Therefore, our team has prepared a guide on how to participate in the Polymarket airdrop.
<a href="https://coinlaunch.space/projects/polymarket/" title="Polymarket (N/A)" target="_blank"><img src="https://coinlaunch.space/media/widgets/0/polymarket.png" width="224" alt="Polymarket (N/A)"></a>