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Despite a federal ban on Americans using the platform for election betting, Polymarket has been actively promoting its services via social media influencers.
The crypto-forecasting website has been partnering with popular US-based influencers to reach a wider audience and drive traffic to its platform. In a development reported by Bloomberg, Armand Saramout, the senior director of growth at Polymarket, reached out to influential individuals on social media in the US in September with a goal of advertising the platform's election betting capabilities.
Utilising influencers
The sponsored posts were featured on Instagram accounts with millions of followers, including Mr. Moist (5.5 million), HoodClips (12 million), and Eric Pan (203,000). Influencer Xavi Fahard has reportedly secured a long-term partnership with Polymarket after satisfactory advert performance.
However, Polymarket claims that its primary goal is to drive traffic and eyeballs to its website, where visitors consume news and do not place trades. The move has sparked concerns about Polymarket's compliance with US regulations and its decision to target the American market despite local restrictions.
Google ads
Polymarket, though having the financial firepower to launch ads on Google for their purported desire for more eyeballs and to drive traffic to their site, have not been able to utilise the space because of its many restrictions. At its core, Polymarket is a betting app in the guise of trading. Users can profit from their knowledge by betting on future events. In this case, it was the US elections that mattered most.
Google does not allow advertising for these types of transactions. Moreover, advertisers must be certified with Google. This is most likely the reason why they opted to reach out to influencers who post content visible to their millions of followers on Facebook and Instagram.
A spokesperson for the company emphasised that they have reached out to influencers on both sides of the aisle to promote their data and services. With a £22 million Trump bet made by one trader on the platform, Polymarket found itself under intense scrutiny from regulators and the public alike. With Trump's win, even more so.
As the situation unfolds, it remains to be seen how Polymarket will navigate the complexities of US regulations and maintain its position in the market.
