Polymarket fuels crypto industry’s $1.2 billion election involvement, political donations up over 10x
The crypto industry’s monetary involvement in the 2024 US presidential election has exceeded $1.2 billion, with Polymarket accounting for a vast majority of the amount, according to a recent report by Breadcrumbs.
The report outlined how political donations, decentralized betting, politifi tokens, and NFT sales have connected crypto with the election in unprecedented ways, marking a sharp increase from previous election cycles.
Donations up 10x
Political donations from the crypto sector have surged to $190 million, nearly doubling the $98 million contributed in the 2022 cycle and up more than 10x from $15 million donated in 2020.
Leading contributors include venture capitalists Marc Andreessen and Ben Horowitz, who each donated $24.9 million to various political action committees (PACs) supporting both Republican and Democratic candidates.
The Winklevoss twins have contributed $10.1 million, focusing largely on supporting pro-crypto Republican candidates, including former President Donald Trump.
Meanwhile, Ripple executives Chris Larsen, Brad Garlinghouse, and Stuart Alderoty have collectively donated over $3 million, with the majority of their contributions going to Democratic campaigns.
Pro-crypto political action committees have also gained momentum in the 2024 election cycle. The Fairshake PAC, a super PAC supporting candidates who advocate for making the US a global leader in crypto innovation, has raised $161 million, the highest among crypto-affiliated PACs.
Other PACs like Defend American Jobs and Protect Progress have collectively raised millions to support pro-crypto candidates on both sides of the aisle, further cementing the industry’s influence in US politics.
Election betting
In addition to political donations, crypto betting has emerged as a major contributor to the industry’s election involvement. The decentralized betting platform Polymarket has facilitated over $1.1 billion in bets on the 2024 US presidential election.
This includes wagers on the overall winner, state outcomes, and popular vote margins. Polymarket’s decentralized structure allows users to bet anonymously using crypto, making it a key platform for election-related speculation.
The report emphasized that while Polymarket allows users to bet on political events with crypto, it is not available to US users due to regulatory restrictions.
Despite the lack of presence within the US, the platform has seen substantial activity, with nearly $900 million bet on the overall winner of the US presidential race and another $200 million on who will win the popular vote.
Politifi tokens and NFT sales
Another significant aspect of the crypto industry’s election involvement is the rise of politifi tokens — meme coins created around political figures.
These tokens, though not officially connected to any campaigns, have amassed a market cap of $440 million. However, the report cautioned that these tokens are highly volatile, and some, like Pepe Trump and DJT, have been flagged as scams.
Trump has also tapped into the crypto space with his release of NFTs, generating over $9 million in sales from multiple collections. These digital assets have further connected the political and crypto worlds, drawing attention from both crypto investors and political supporters.