TLDR
- Polymarket appears to have confirmed layoffs, but the cuts were smaller than the 30% figure rumored online.
- Some believe the prediction market is trimming staff ahead of a possible 2027 IPO.
- Polymarket raised $1 billion in August at a $21 billion valuation.
- DraftKings reportedly cut staff last week, its third round of layoffs this year.
- Some early Polymarket users are giving up hope of a native token airdrop.
Polymarket has reportedly cut staff, just weeks after posting its busiest month on record. Sports betting company DraftKings is also said to have reduced its workforce once again.
Both companies face rising competition in prediction markets and sports betting. One is privately held, while the other is publicly traded on the Nasdaq.
Polymarket Cuts Smaller Than Rumored
Polymarket appears to have confirmed that it laid off workers. However, the cuts were not as deep as the 30% figure some social media accounts had claimed. No exact headcount figure has been reported.
The company, led by CEO Shayne Coplan, has faced scrutiny over a perceived lack of professionalism. It has also faced claims of management missteps.
The layoffs follow a strong run for the business. October was Polymarket’s highest volume month ever, and much of that growth came from its recently launched Polymarket US unit.
Some observers believe the company is trimming staff to get in shape for a possible initial public offering in 2027. Polymarket has not said publicly that it plans to list its shares.
A public listing would give early investors a way to cash in on their stakes. Those backers include Donald Trump Jr. and Intercontinental Exchange.
Polymarket reportedly raised $1 billion in August. That funding round lifted its valuation to $21 billion, which would make for a small IPO by current standards. Earlier reports suggested its annual revenue was nearing $2 billion.
Trading in Polymarket shares held by employees has reportedly picked up on private markets. That activity is said to far exceed trading in employee shares at its closest competitor.
An IPO could also suit institutional investors if legal efforts to ban or limit sports event contracts gain ground. Polymarket’s chief rival has said it could explore going public after this year.
Chatter about a Polymarket listing picked up after crypto exchange Kraken filed for its own public offering. Still, any timeline for Polymarket remains unconfirmed.
DraftKings reportedly laid off staff last week, ahead of its third-quarter earnings report. Some affected former employees appear to have confirmed the cuts on social media.
If accurate, this would be the Boston-based company’s third round of layoffs this year. It would also be its fourth since 2023.
In February, DraftKings announced job cuts that some analysts estimated could affect up to 5% of its staff. Those analysts said the move could save up to $30 million a year. The latest round adds to those earlier cost cuts.
Polymarket Token Hopes Fade
There is another, more speculative hint that Polymarket may favor a public share sale. Some early users are giving up on the company ever launching a native crypto token.
Many had hoped the token would be airdropped to early users, big traders and creators. The idea has been widely discussed in crypto circles for some time.
Some traders and social media users say the token has been dangled in front of them for a long time. They now believe there will be nothing to show for it.
