AI-Enabled Prediction Market PredX Raises $500k in Pre-Seed Funding
New York, New York, February 27th, 2024, Chainwire
The blockchain-powered prediction market PredX, which allows users to participate in future predictions, is now valued at $20 million.
Prediction market PredX, an AI-enabled event exchange with headquarters in NY, achieves a $20 million valuation during its pre-seed round.
The co-founder of Ethereum Vitalik Buterin has been bullish about prediction markets for a long while, and the time is now ripe for a new successful prediction market with 2024 being the so-called ultimate election year. Elections will be held in at least 64 countries, including most of the largest nations worldwide, that is, the US, India, South Korea, UK, Pakistan, Indonesia, and Mexico, as well as the European Union. This means approximately half of the world’s population will cast their ballot by the end of the year. On top of that, two major sports events are scheduled for 2024: the European Championship and the Olympics, the latter gathering billions of viewers.
PredX is a prediction market incubated by the SEI chain. The platform enables users to exchange views on current trends and events and purchase shares based on the probability of an event or outcome. PredX uses blockchain to record all transactions so they are secure and easily auditable. The use of SEI blockchain also makes it more democratic than traditional web2 solutions as there is no central ledger.
The application of AI helps tailor event suggestions to users’ preferences to enhance relevancy and engagement. Seeing the success of the AI recommendation engines, for instance, on TikTok, it is apparent users appreciate such recommendation models and find it easier to create content and reach others with it. AI is also used for processing popular cryptocurrency, technology, and celebrity news so that the platform becomes an extensive source of event-related data. It thus helps users gain knowledge and make more informed decisions while encouraging active participation in daily trading activities. This approach is also likely to attract high-quality traders as the community will be more knowledgeable about the events and more willing to participate in prediction-making and trading.
With prediction markets getting more publicity, there has been a talk about a new form of governance: Futarchy. The concept was originally proposed by economist Robin Hanson in a 2007 paper as a better alternative to pure democracy. In futarchy, prediction markets are used to assess what policies will be most beneficial for an organization. Individuals vote on metrics to evaluate how their organization is faring, and the prediction market is used to pick policies to optimize these metrics most effectively.
With the growing popularity of futarchy, there may also be an increasing demand for futarchy-as-a-service solutions. That’s where PredX comes in with its existing solutions—the platform can be used to enhance community decision-making to help communities thrive. Undoubtedly, there are benefits to futarchy. Meta DAO, which has used this concept of governance for its new coin and has seen its price soar.
Following the February pre-seed round led by Penrose Tech with participation from Malana Ventures, the project has started its seed round and has already seen its value skyrocket. Apart from its funding success, the project has also been presented with multiple awards. It won first place in the Silicon Valley AI+Web3 pitch competition, where it competed against more than 100 participating teams in July 2023. In September 2023, it secured second place in the AI+Web3 Hackathon with 30+ participating teams.
The PredX team has been keeping busy. It has filed applications for two AI algorithm invention patents. By late February, it plans to launch its testnet to engage the community and provide it with the opportunity to earn PRDX points and qualify for future token airdrops. Following the release of SEI V2, PredX will also support the EVM ecosystem.
PredX solutions will be available to users outside of the US due to CFTC options regulations.
About PredX
PredX is an AI-enabled prediction market on the SEI chain. The platform enables users to exchange views on current events and purchase shares based on the probability of an event occurring. It uses an AI recommendation engine to provide relevant recommendations and increase user engagement.
