Will Polymarket Launch Its Native Token? Here is Why Some Traders Believe an Airdrop is Imminent
Will decentralized prediction market Polymarket conduct an airdrop in the coming months? This year’s sudden growth of the platform has ignited speculations that a native token will be developed soon and possibly reward dedicated users. Notably, some Polymarket users seem to be making moves that would boost their chances of receiving bigger token allocations.
However, it is worth mentioning that Polymarket hasn’t announced plans to launch a token. But, given the rising trading volumes along with the hype around the United States presidential elections, some users anticipate a token launch over the coming weeks.
Those who foresee a future Polymarket cryptocurrency are already making attempts to farm the possible airdrop. Prominent trader Tyrael has noted that some users have been inflating their trading volumes artificially in hopes of getting bigger airdrop rewards.
Tyrael, who’s also optimistic about Polymarket launching a token, argues that the move is necessary for the prediction market as part of its revenue growth strategy, considering that it doesn’t charge subscription or transaction fees. The trader says Polymarket will need to reward its investors, who recently gave the platform over $70 million in funding, with tokens as a return on investment. Ethereum founder Vitalik Buterin is among the investors.
The Rise of Polymarket
Developed on Ethereum scaling solution Polygon, Polymarket is undoubtedly one of the most successful blockchain-powered projects in 2024, processing nearly $460 million worth of trading volume in August alone. Furthermore, Dune data shows that the prediction market has seen 50,000 users or more monthly since April.
By comparison, Polymarket struggled to attract 4,000 monthly users in 2023. Moreover, only 3,978 accounts were created that year. Notably, the platform welcomed over 70,000 new users last month.
Polymarket has grown in popularity to the point that giant media houses like CNN are quoting statistics on the platform when reporting on the American presidential election.
Popular Trader Explains Why Polymarket Might Consider Launching a Token
Meanwhile, Fhantom Bets, a popular trader on Polymarket, says the growing airdrop rumors have been fueled by the increased trading volume after the prediction site received funds from investors. They add that Polymarket has no other ways of generating returns for its investors besides an airdrop.
Since the prediction platform will rely on a token airdrop to raise funds for investors, Fhantom Bets claims that users will only receive small allocations as the goal will be to raise more money, not give it away.
While Polymarket has yet to confirm a token launch, Fhantom Bets predicts that the platform will likely roll out its native crypto after the United States election in an effort to retain users once the hype around this long-awaited event fades.
How Some Polymarket Users Are Farming Potential Airdrop
As noted by Tyrael, some Polymarket users are now artificially inflating their volumes in an attempt to farm the predicted airdrop. But how are they doing this? They quickly buy and sell shares as many times as possible throughout the day. This enables them to climb the “Top Traders by Volume” leaderboard.
It is not difficult to spot Polymarket users who are purchasing massive amounts of shares and then selling them quickly to inflate their trading volumes. For instance, we noticed a trader called BoardaHenek039 who spent $103 acquiring 103,000 shares in the “Will another country win the most medals in the 2024 Paralympics?” market and sold them at the same price within a few minutes. This move boosted the trader’s volume by over $205,000.
Traders like BoardaHenek039 boast significant trading volumes but have only posted small profits or losses. Fhantom Bets, who’s ranked third-biggest trader by volume, says such traders may not receive airdrop allocations. They’ve vowed to ensure Polymarket doesn’t reward anyone with inflated trading volume.
What’s an Airdrop?
Airdrops are token rewards distributed to active users who meet established criteria, like engaging with a platform and actively contributing in a project’s community. Those who receive airdropped tokens can cash them out on centralized exchanges.
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