Donald Trump Jr. has invested in the world’s largest crypto-based prediction platform, Polymarket. Through the 1789 Capital fund, Trump Jr. injected an unnamed sum in the tens of millions.Â
Polymarket received an unnamed sum in the tens of millions from 1789 Capital, the VC fund backed by Donald Trump Jr. Sources cited by Axios also announced Trump Jr. would be joining Polymarket’s board in the position of advisor. Trump Jr. is also an advisor for Kalshi, Polymarket’s main prediction competitor.Â
The investment may further pave the way for Polymarket’s return to US customers, after the platform saw its services limited due to the lack of a betting license. As previously reported by Cryptopolitan, Polymarket acquired the QCX platform, securing a license that could apply to the prediction market.Â
Polymarket may make headway in the US market
The involvement of Trump Jr. further signals that crypto-based predictions may face little legal risk under the current Trump administration, despite misgivings about Polymarket and its influence.Â
Polymarket also gained a valuation of up to $1B based on the Founders Fund updated estimation from the platform’s latest funding round. So far, Polymarket remains tokenless, though it has floated the idea of issuing a native stablecoin in addition to using USDC.
According to sources cited by Axios, 1789 Capital may consider Polymarket as a candidate for going public with an IPO sale. The Polymarket investment follows the market trend where platforms and stablecoins become the major use cases for on-chain activity.
The platform may have started talks on financing back in 2024, as 1789 Capital founder Omeed Malik reached out to Coplan. However, the investment was delayed before securing regulatory clarity for entering the US market.Â
Polymarket may also boost its reach through X, as the social media’s official news and prediction partner. The prediction platform is no longer investigated by the CFTC and the US DOJ, but its role as a fully accessible market is still uncertain.
Polymarket faces other obstacles, including a recent ban in Australia under the umbrella of general betting laws. The prediction market is also investigating a $40M arbitrage exploit, as bots were able to outplay human players.Â
Polymarket grows on breaking news
Polymarket established over $138M in open interest, remaining relatively constant over the past few months. The platform saw an outflow of users, though predictions as a whole expanded in competitive markets. Active users on Polymarket diminished in July, with only 179K on a monthly basis.
The breaking news landing page is one of the busiest venues on Polymarket, as those prediction pairs often have the biggest volumes and liquidity. Polymarket has shown its readiness to serve as both a market and a news platform, settling the opinion on current issues.Â
In the past months following the US election, Polymarket drew in a new cohort of users, who are more keen on fun with smaller bets, rather than big-scale pairs. The biggest vulnerability of Polymarket remains the oracles that decide on the outcome, as some outcomes may be manipulated by voting.
