A New Prediction Market Raises $3M in Pre-Seed Round Led by 1confirmation

According to CJ Hetherington, co-founder and CEO of Limitless Labs, three entities – Paper Ventures, Collider, and Public Works – took part in a funding round. Limitless Labs is the company developing a market platform on top of Base, a layer-2 blockchain network created by Coinbase (COIN), a well-known cryptocurrency exchange.

At a point when prediction markets centered around cryptocurrency-based elections have gained significant attention, with Polymarket accumulating close to $1 billion in bets for the U.S. presidential race, Limitless – a team of eight developers who have been creating their marketplaces over the past six months – is not solely concentrating on elections.

One of its areas of expertise involves swiftly-expiring markets, primarily focusing on the final price of a stock or cryptocurrency at the end of a trading session. For instance, on Monday, the market with the highest volume invited traders to wager on whether Coinbase’s stock would finish above $175 by 4 p.m. Eastern time. Hetherington described these as analogous to the rapidly-expiring options (0DTE) commonly found in traditional finance.

According to Hetherington, people appreciate the daily markets due to the fact that their money isn’t tied up for an extended period with only modest gains in return. Furthermore, the rapid turnover of goods is what entices traders to keep returning.

Heatherington stated, “On average, traders currently using our platform are investing approximately four hours weekly. This indicates a remarkable level of retention since about 38% of our initial users return for another visit within seven days, as our latest data shows.

Despite Limitless appearing small next to Polymarket, it’s important to note that their daily transaction processing surpasses $200,000, whereas Polymarket handles transactions in the tens of millions each day based on data from Dune Analytics. Notably, Limitless doesn’t currently have external market-makers, but they are planning to initiate discussions about this soon, as stated by Hetherington.

At present, one unique feature that stands out is user-driven market creation. Users with substantial social media influence have the power to propose new markets. If these proposed markets get featured on the Limitless homepage and lead to trades, the proposing user can receive compensation, which is a small percentage of the trade volume.

According to Hetherington, many well-liked markets on our platform weren’t developed by us; instead, they were built by our community members, who have been making income from them.

At least one other prediction market, Hedgehog Markets, has something similar in the works.