Donald Trump makes a significant move! Invests in the encryption prediction platform Polymarket and joins the advisory board.

Donald Trump Jr., the eldest son of U.S. President Donald Trump, has recently officially entered the encryption prediction market by investing in the world’s largest prediction platform, Polymarket, and joining the company’s advisory board. This move has not only sparked industry follow but is also seen as an important signal for Polymarket’s return to the U.S. market.

Strategic Investment and Dual Role as Consultant

According to a statement on August 26, Trump made a strategic investment in Polymarket through his venture capital firm 1789 Capital, with specific amounts and terms not yet disclosed.

He stated in the announcement: “Polymarket breaks the monopoly of media hype and so-called ‘experts’, allowing people to bet based on their true expectations for the future. I am pleased that 1789 Capital is investing in Polymarket and honored to join the advisory board.”

It is worth noting that little Trump is also a strategic advisor for Kalshi, a competitor of Polymarket, which means he will serve as an advisor in both major prediction market platforms.

The Rise of Prediction Markets and Competitive Landscape

Polymarket became popular during the recent election season because it allows users to bet on specific events (such as presidential election results) using encryption.

On the eve of the 2024 U.S. presidential election, the download numbers for Polymarket and Kalshi surged to the top of the Apple App Store, even receiving an endorsement from Tesla CEO Elon Musk, who stated that “the prediction market is more accurate than polls.”

Legal Challenges and Plans to Return to the US Market

Polymarket reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) in 2022 for allegedly offering illegal binary options contracts, paying a fine of $1.4 million, shutting down non-compliant markets, and blocking U.S. users.

However, the platform announced last month its plan to acquire the CFTC-regulated derivatives exchange QCEX for $112 million, paving the way for its return to the U.S. market.

The Future of Prediction Markets: The Integration of Encryption and Traditional Gambling

In addition to Polymarket and Kalshi, traditional encryption and financial platforms like Robinhood are also exploring prediction market businesses, viewing them as a digital upgrade of traditional gambling.

With the participation of more institutions and well-known individuals, the prediction market is expected to become an important growth point in the encryption field in the future.

Conclusion

Donald Trump Jr.'s investment and advisory role brings a dual endorsement of politics and capital to Polymarket. As the platform advances its plans to re-enter the U.S. market, competition in the encryption prediction market will become even more intense. For investors, this may be the best time to observe the trend of integration between encryption and traditional finance.