Polymarket, a platform built on crypto rails, offers prediction markets using smart contracts. Launched in 2018 by Shane Coplan, it’s decentralized with features like an internal market integrity committee and the UMA protocol for security. The platform allows users to trade USDC, a stablecoin, and has faced challenges from U.S. regulators who deemed it an unlicensed derivatives exchange. Despite this, Polymarket has managed its operations by using VPNs to bypass geofencing restrictions.
The company’s investors are hopeful the incoming Trump administration will end the regulatory probe as part of a broader crypto-friendly agenda. However, Polymarket faces challenges in securing funding and improving its resolution criteria for disputes, including one involving Barron Trump, a memecoin. Despite these hurdles, the platform has successfully disrupted traditional media by gaining traction among major outlets like Politico and Bloomberg.
In summary, Polymarket is a decentralized prediction market that’s proving challenging to regulate but has shown resilience through innovation and community support.