Polymarket, Myriad, Kalshi: Future of Prediction Markets Moving From Web2 To Web3
Like artificial intelligence, the Web3 world wants a piece of the action in online betting markets. There is no greater example than this than the August announcement by a former Polymarket executive that he will invest $15 million in another blockchain-based online prediction market instead of building it on the traditional web.
Toni Gemayel, for Head of Growth for Polymarket and Kalshi, said on his X social media account on Aug. 27 that he will put up $15 million, together with Coinbase Ventures and other venture capitalist in a blockchain-based start up called The Clearing Company to “build the first on-chain, permissionless and regulated prediction market.”
In June, Polymarket raised $200 million on a $1 billion valuation, followed by rival Kalshi which raised $185 million on a $2 billion valuation that same month, Techopedia reported. In August, Polymarket generated more than $644 million in overall trading volume.
Polymarket might look like the traditional internet, but it is a decentralized platform built on Ethereum (Crypto: ETH) and Polygon (MATIC/USD) Layer 2 for fast and low-cost transactions. It allows users to bet on the outcomes of real-world events like elections, sports, and economic outcomes using stablecoins. It is, arguably, the ring leader in the space, surpassing major betting platforms on the traditional web like FanDuel (NYSE:FLUT) and DraftKings (NASDAQ:DKNG) in web traffic.
David Tawil, president of ProChain Capital, a cryptocurrency investment firm in New York City, said on his X account on Aug. 29 that around 40% of Polymarket’s sales volume comes from sports betting; 40% comes from bets on cryptocurrency price moves.
VCs Bet Big on “Info Finance”
Vitalik Buterin, Ethereum co-founder, said prediction markets were part of a larger category he dubbed “info finance”. People are betting on polls. Will Ethereum hit $5,000 by December 1? Place your bets.
“Prediction markets are making media experiential,” said Loxley Fernandes, CEO and co-founder of Myriad, another on-chain prediction market. “Of course there are both economic and psychological incentives for participating, but I think they can …
About The Author
