It appears as if the two major players in the predictions market, Polymarket and Kalshi, are in the venture capitalist scene. Both companies are currently being valued at astronomical numbers compared to where they were when they started five years ago, as they inked deals with the National Hockey League this week.
Currently, Kalshi is fielding offers from investors after it was valued at more than $10 billion. Bloomberg reports that this comes just two weeks after Kalshi was valued at $5 billion on October 10. At the same time as its $5 billion valuation, the company began to raise $300 million from venture capitalists. It was only in June that Kalshi was valued at $2 billion.
It’s not a massive surprise that Kalshi’s value will have skyrocketed in recent months. The prediction market has recently entered the sports wagering arena, taking on legacy sportsbooks, as well as apps like DraftKings and FanDuel. In its first week of hosting NFL bets, it managed to outpace earnings that were brought in during the presidential election.
Kalshi and Polymarket value surge as prediction markets achieve unprecedented success
Meanwhile, Polymarket is also seeing successes. Despite a more bullish approach to the prediction market game, with a fairly unmoderated community, it is seeking to raise cash at a valuation of $12 to $15 billion. As with Kalshi, this is a massive leap from where it was four months ago, with Bloomberg reporting that it’s 10 times its value since then.
However, much like Kalshi, Polymarket’s value has risen as it gets more involved in other elements of the business. While Kalshi has a direct line to the Trump administration, Polymarket has been courting the likes of Peter Thiel and the owner of the New York Stock Exchange, Intercontinental Exchange Inc..
Thiel’s Founders Fund helped Polymarket raise $200 million off the back of a $1 billion valuation. The second deal with Intercontinental Exchange Inc. saw the CEO of Polymarket, Shayne Coplan, become the youngest self-made billionaire, as it claimed it would invest up to $2 billion on an $8 billion valuation.
Elsewhere, Polymarket is about to act as a “clearinghouse”, like a confirmation portal for DraftKings’ own prediction market. Being involved with one of the largest sportsbooks in the US will drive up the price.
Featured image: Kalshi, Polymarket, US Radisson
The post Prediction markets Kalshi and Polymarket leap in value as scope changes appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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