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Polymarket Plans Token Launch After US Market Relaunch

Polymarket Plans Token Launch and U.S. Relaunch After Regulatory Challenges and Strategic Acquisition

  • Polymarket will release a token and airdrop but is prioritizing a U.S. relaunch first.
  • The platform was banned in the U.S. in 2022 due to a Commodity Futures Trading Commission (CFTC) settlement.
  • Polymarket is conducting an early test for its U.S. app, accessible by invitation only.
  • The company acquired derivatives exchange QCX, which received a CFTC no-action letter, enabling Polymarket‘s U.S. return.
  • The platform’s value reached $9 billion after a $2 billion investment from the New York Stock Exchange’s owner.

Polymarket, a leading prediction market platform, confirmed the forthcoming launch of its own token and an accompanying airdrop. The company, however, stated that its primary focus remains on reentering the U.S. market, where it faced restrictions following a CFTC settlement in 2022.

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Matthew Modabber, the chief marketing officer of Polymarket, announced on a broadcast show that the platform is slowly preparing the token to ensure it delivers “true utility” and lasts long-term. The U.S. app for Polymarket is currently in early access, requiring users to join by invitation.

The company aims to address regulatory concerns before proceeding with the token launch. Modabber emphasized, “We just want to make sure that when we do shift our focus to a token, it is one of our core priorities. Right now, our core priority is launching the U.S.”

In 2022, the CFTC fined Polymarket $1.2 million for violating swap data reporting and recordkeeping rules, effectively barring the platform from operating in the U.S. since then. Following that, the CEO’s home was raided by the FBI late last year, with electronics seized as part of ongoing investigations.

In a key development this year, Polymarket acquired derivatives exchange QCX, which earned a CFTC no-action letter in September. This letter acts as a regulatory approval that has cleared the way for Polymarket to relaunch its services in the U.S.

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The anticipated POLY token has been hinted at for months, with the CEO posting its ticker on social media recently. Earlier reports also mentioned token warrants offered to July investors, granting rights to purchase the token upon launch.

Users have engaged in strategies to maximize potential airdrop allocations, though Polymarket has adjusted to more sophisticated farming tactics. Following the recent announcements, betting odds for a token reveal this year rose from 11% to 29% on prediction market Myriad.

Polymarket has reached a valuation of $9 billion after receiving a $2 billion investment from Intercontinental Exchange, owner of the New York Stock Exchange. The CEO credited Intercontinental Exchange’s founder, Jeff Sprecher, as a strong advocate for tokenization, noting, “Under the hood, every prediction market is actually tokenized—there’s a yes token and a no token.”

This move signals Polymarket‘s concerted effort to balance regulatory compliance with expanding its token-based product offerings in the rapidly evolving prediction market space.

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