Polymarket runs election betting ads via influencers despite US trading ban: report

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As a seasoned crypto investor with a keen eye for regulatory compliance and market trends, I find myself intrigued yet cautious about Polymarket’s recent moves. On one hand, partnering with influential figures to drive traffic and awareness is a smart marketing strategy, especially in the crypto space where social proof plays a significant role. However, operating within legal boundaries and respecting local regulations is paramount for any business.

Polymarket collaborates with domestic influencers within the U.S., encouraging election wagering, even though it’s against federal regulations for American citizens to place bets directly on their platform.

It appears that Polymarket has reached out to popular American social media figures for the purpose of advertising election-related bets, a practice that seems to contradict local regulations, according to information obtained by Bloomberg.

According to the report, Armand Saramout, Polymarket’s senior director of growth, reached out to several popular U.S. social media figures in September with the aim of boosting visibility. Subsequently, influential accounts such as Mr Moist (5.5 million followers), HoodClips (12 million followers), and Eric Pan (who specializes in finance with 203,000 followers) have shared posts backed by Polymarket, using relevant hashtags.

As a researcher, I’m sharing the news: Xavi Fahard, who oversees an Instagram account boasting over 16 million followers, has secured a multi-post agreement with Polymarket. In his remarks to Bloomberg, Fahard pointed out that these ads demonstrated performance comparable to other sponsored content.

Polymarket in spotlight over $28m Trump bet by one trader

A representative from Polymarket told Bloomberg they’ve aimed at penetrating the U.S. market. Interestingly, this company has also approached influencers from various political viewpoints to boost their data and attract viewers to polymarket.com. Remarkably, about 99% of site visitors browse news without ever making a trade.

The examination of Polymarket’s efforts within the U.S. became more rigorous following The New York Times disclosure that a trader with a financial background, utilizing four different accounts, wagered approximately $28 million on Trump-related matters. However, the betting platform asserted that they did not engage in market manipulation, stating instead that these bets were based on the trader’s personal opinions rather than an effort to control the market.

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2024-11-05 11:24