Polymarket founder participated in the Ethereum ICO during high school

ChainCatcher news, according to Fortune magazine, Kalshi and Polymarket are competing for dominance in the prediction market. This field has existed for years, but it truly took off in 2024, driven by a more relaxed regulatory environment. Both companies announced a new round of funding last week, but Polymarket's valuation has reached billions of dollars, causing a bigger stir.

The product differences between the two startups are almost as small as those between Uber and Lyft. Aside from Kalshi being slightly ahead in the regulatory process, the most significant difference is that Polymarket is built on blockchain infrastructure. Kalshi is eager to add crypto features, but catching up to its competitor is not easy—Polymarket has been settling trades on the Polygon Layer 2 network since its inception, and its founder Shayne Coplan (27 years old) was even involved in Ethereum ICOs during high school.

Critics can find many issues with Polymarket, but no one can question the authenticity of its crypto background. The more difficult question is: why does Polymarket's "crypto lineage" allow it to be valued much higher than its competitor? Especially considering that Kalshi has made significant inroads into the U.S. sports betting market and far exceeds Polymarket in app downloads and active users. The answer may be summed up in two words: token airdrop.

Shayne Coplan published a post last week ranking cryptocurrencies, with a (currently fictional) token POLY placed fifth.