Decentralized predictions platform Polymarket has launched new information markets just three weeks after being fined $1.4 million by regulators. However, U.S. residents will not be able to trade on the site, the company said in an email Monday.
- U.S. residents will be able only to view information on the markets.
- Polymarket said it will block trades from U.S.-based users as it continues “working through the regulation process and focusing on the future of the company.”
- Earlier this month, Polymarket launched a market called Airdrop Futures that allows speculators to follow and trade on the likelihood of airdrops. This feature is also unavailable to U.S.-based traders.
- On Jan. 3, the Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million and ordered it to close its markets and offer users full refunds.
- Bloomberg reported the CFTC started investigating Polymarket in October.
- When the probe began, Polymarket was reportedly in talks to raise money at an approximately $1 billion valuation.
UPDATE (Jan. 24, 2022, 20:13 UTC): Adds bullet point on Airdrop Futures.
CORRECTION (Jan. 14, 22:10 UTC): Changes headline and first sentence to reflect that new markets have been issued on Polymarket following the CFTC action and that the site wasn't shut down. A public relations communication for Polymarket mistakenly said that the company had relaunched its site.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.