Blockchain-based predictions platform Polymarket is seeking an additional $50 million in new capital amid potential plans to launch a token, The Information reported Monday.

Investors in the round will be issued token warrants, giving them the right to purchase tokens if Polymarket decides to launch them in the future, the outlet reported, citing anonymous sources.

It’s unclear whether the tokens will provide additional utility within the platform. Polymarket CEO Shayne Coplan did not immediately return a request for comment.

It follows the platform’s $70 million raise over two rounds this year, where it picked up $25 million in a Series A led by General Catalyst and an additional $45 million in Series B funding with participation from Ethereum co-founder Vitalik Buterin.

Polymarket has been riding high on U.S. election fervor this year, capturing nearly $1 billion in trade volume from those taking a punt on who will become the country’s 47th president.

Built atop the Ethereum and Polygon blockchain networks, Polymarket allows participants to buy and sell shares in different possible outcomes of real-world events. The price of one “share” in a prediction market ranges from $0.00 to $1, and its price correlates to its percentage chance of winning, or its “odds.”

While speculation on who will take the White House in November has helped fuel the platform’s recent surge in popularity, Polymarket also allows betting on pop culture, sporting, and other political events.

And traders are taking outsized bets this year, with total trading volume reaching its highest point on the platform last month, topping out at $472.8 million, according to one Dune dashboard.

Its popularity has led those within the Polymarket community to opine in recent weeks on the possibility of a token to help fund operations, as the platform does not currently charge users fees.

Traders have started altering their behavior in response to the speculation, attempting to artificially boost their trading volume in hopes of securing a larger airdrop reward, according to whales, or large traders, monitoring the activity, Decrypt previously reported.

Staking Bitcoin is fast becoming a reality—a functionality once the sole privilege of proof-of-stake crypto networks.

Thanks to Babylon, HODLers can already lock up their BTC, which will soon be used to secure and earn yield from multiple staking-based blockchains at a time. While this has enormous implications for the entire crypto economy, its consequences may be most strongly felt in an ecosystem that’s just getting started: Bitcoin layer-2 networks.

“Bitcoin L2s [are] definitely a very important part of our customers,” said David Tse, co-founder of Babylon, in an interview with Decrypt. “Bitcoin staking becomes a mechanism where the L2s can get security from Bitcoin.”

Since the rise of Bitcoin’s Ordinals protocol in early 2023, developer activity and experimentation on Bitcoin have seen a stark revival. In particular, after Robin Linus unveiled the computational framework “BitVM” last October, a flurry of new models for decentralized Bitcoin layers have come onto the scene.

The term “Bitcoin L2” is thrown around loosely, but is generally understood as a system that builds “on top of Bitcoin.” It either complements Bitcoin, inherits its decentralization and security, or uses BTC as a currency—or some combination of the three.

Babylon adjusts that understanding to include being secured by BTC the asset—not just the network.

“Bitcoin L2 is a very important source of demand for us,” said Tse. “They want to get liquidity from Bitcoin, [and] they want to get security from the most secure chain in the world.”

The co-founder said he’s already in conversation with Build On Bitcoin (BOB), a hybrid Ethereum and Bitcoin L2, to potentially introduce Bitcoin staking to the network.

To clarify, Babylon’s Bitcoin staking functionality does not require a “wrapped” or bridged version of BTC on a separate blockchain. All staked coins are locked up on layer-1, and are fully controlled by their owners’ Bitcoin private keys.

Earlier this month, Babylon launched Phase 1 of its staking mainnet, opening the floodgates for users to lock up their BTC for future staking. At first, the team capped their system to hold up to 1,000 BTC, which was well under the demand that Babylon had already accrued for their product.

This triggered an on-chain race and fee war among users to see their staking deposits processed first, which spiked the Bitcoin network’s transaction fees far higher than even the team expected.

“The 1,000 Bitcoin cap is very much for security reasons,” Tse said. “We expect as the cap increases, the competition in terms of the gas war will be lower.”

Compared to altcoin chains, the co-founder said that accessing Bitcoin staking will be much easier. Unlike Ethereum, Babylon’s delegated staking model lets validators handle the technical burden of running the network and providing security.
Furthermore, whereas Ethereum requires at least 32 ETH ($80,800) to solo stake, Babylon imposes no such minimums aside from the cost to process the transaction.

After that, a user’s Bitcoin will be able to generate them what Babylon calls safe yield—potentially across multiple blockchains at once. The only risk involved would be slashing risk at a protocol level, if the validator you trust with your stake behaves dishonestly.

Theoretically, a protocol like Babylon could put to work hundreds of billions of dollars in BTC that is currently idle, bolstering its current role as a store of value asset.

When asked whether BTC staking could pose a competitive threat to the value of altcoins that once held this functionality over BTC, Tse provided a more optimistic outlook. He said Babylon could save proof-of-stake chains from needing to rapidly dilute their native assets to keep their systems secure, by securing their networks using BTC capital instead.

“It is very expensive to attract people to buy the native asset in order to provide staking,” he explained. “They end up paying a very high yield. Therefore, it is very unhealthy for the tokens of these projects.”

Tse predicts a future where staking on Bitcoin is as popular as it is on Ethereum, where about 28% of the circulating supply is currently staked. However, that staked capital would still be unlocked through liquid staking tokens with which stakers can still access other emerging Bitcoin applications, like lending, borrowing, and trading.

“I think that is why staking is such a fundamental use case of an asset,” he concluded, “and that is why we’re excited about giving this to the biggest asset.”

Edited by Ryan Ozawa

Bitcoin automated teller machines in Australia have surged in recent years, with the country now the fastest-growing market in the world.

There were just 73 Bitcoin ATMs in the country in September 2022. That number has since surged to 1,162 installations, according to data from Coin ATM Radar.

It places Australia third in total installs, behind only the U.S. and Canada, whose numbers dwarf that of the island nation, at 31,861 and 3004, respectively.

The U.S. has had around the same number of machines since February 2022 following declining growth, while Canada has added roughly 780 new ATMs over the same period.

The surge in Bitcoin kiosks follows a false start in Australia after the country cracked down on the machines amid a rise in crypto prices in 2019. 

Local crypto exchange Auscoin was first to market several years ago, but its efforts to build a network of ATMs floundered when the financial regulator, AUSTRAC, suspended its license due to alleged links with organized crime.

In April 2022, the regulator cited crypto ATMs as a concern for funding criminal activity in its Preventing The Criminal Abuse Of Digital Currencies report. Bitcoin ATMs are not illegal in Australia, provided they are licensed.

The rapid growth since 2022 stems from overseas companies moving in to fill the void left by Auscoin’s failure.

The current leader is CoinFlip’s network of ATMs, which maintains 700 kiosks across Australia and New Zealand, per Coin ATM Radar.

CoinFlip’s entry to Australia’s market came when it acquired a local player, Layer 8 Networks, in 2022—right around the time that the national ATM network growth began.

Edited by Sebastian Sinclair