There have been recent reports that the US Commodity Futures Trading Commission is investigating Polymarket’s decentralized forecasting market. As it turns out, Polymarket has not been charged with any illegal activity so far.
to the Report The Block, the Bloomberg news service, recently reported that the US Derivatives Regulatory Authority is considering whether PaliMarket will allow its users to buy and sell non-standard trading instruments and use binary options. Gives or not. If this is true, the market must comply with the rules of this government agency.
Double trading option is a trading method in which the trader receives a pre-determined amount of money if he has acted correctly and will not receive any profit if he has made a mistake. Of course, this is the most common definition of dual transaction option, and in different trading environments the rules can be different.
A Pallmarket representative told Bloomberg:
PaliMarket is committed to complying with relevant laws and regulations, providing the necessary information to regulators, and cooperating with them in the investigation process.
According to a Bloomberg report, Polymarket has so far not been charged with any illegal activity. The report said James Paul McDonald’s Pallmarket has hired James McDonald, a former executive director of the Commodity Futures Trading Commission and a current member of Sullivan & Cromwell Law Firm, to accompany the company in the investigation. .
PaliMarket allows its users to use the stable USCin digital currency (USDC) to predict specific events such as the outcome of sports matches and political elections, and if they guess correctly, they will receive a certain amount as a reward. Predicting results and depositing currency in the Pali Market is done through the purchase of Ethereum-based contracts.
Pallmarket raised $ 4 million last fall, just days before the US presidential election.
According to Bloomberg, Pallmarket plans to launch a new capital raising phase with a potential value of $ 1 billion. This could put Pallmarket on the list of $ 1 billion digital startups. Since the beginning of this year, many projects have increased the value of their company to more than $ 1 billion by going through similar stages of raising capital. The news service said that since the launch of Pali Market in June 2020 (June 99), about 4 billion shares have been traded in the market of this platform.