Popular cryptocurrency-based betting platform Polymarket, which has gained prominence this U.S. election season, might be gearing up to launch its own token.

What happened: The so-called decentralized prediction platform was in talks to raise $50 million in fresh funding, tech-focused publication The Information reported Monday, citing sources familiar with the matter.

“Investors in the round will receive token warrants, which grant them the right to purchase tokens if Polymarket launches them at a later date,” the report added. 

It was further revealed that Polymarket could use the potential token as a way for users to validate the outcome of real-world events. 

Polymarket didn’t immediately respond to Benzinga’s request for clarification on the matter. 

Earlier in May, Polymarket announced raising $70 million, led by tech billionaire Peter Thiel’s Founders Fund and Ethereum ETH/USD founder Vitalik Buterin.

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Why It Matters: Polymarket, built atop Ethereum’s Layer-2 chain, Polygon MATIC/USD facilitates buying and selling outcome shares using cryptocurrencies. The shares can be redeemed for $1 if the outcome is correct and become worthless if it’s incorrect.

Polymarket’s trade volume has exploded in recent months, with August reaching over $472.7 million and September already seeing $400.21 million, according to the on-chain analytics platform Token Terminal.

With almost $1 billion wagered on who would win the battle for the White House between Donald Trump and Kamala Harris, the platform has profited from the excitement surrounding the U.S. elections. 

Should the startup proceed with the token launch, it would be among the most prominent debuts in the recent history of the cryptocurrency market.

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Photo courtesy: Hubert Burda Media