Key Takeaways
- Trump Jr. has joined Polymarket’s advisory board.
- The appointment comes as the venture capital firm he is a partner at has invested in Polymarket.
- Trump Jr. also serves as a strategic advisor to Kalshi.
Donald Trump Jr. is joining Polymarket’s advisory board as part of an investment deal with 1789 Capital, the venture capital firm he is a partner of.
While in fitting with his interest in crypto, the move threatens to create a conflict of interest for Trump Jr., who is also an advisor for rival prediction market operator, Kalshi.
1789 Capital Backs Polymarket
Founded in 2022 by members of Rockbridge Network, 1789 Capital has made a name for itself as the MAGA movement’s most VC arm.
The firm’s investments include Tucker Carlson’s media company, the defence firm Anduril, Plaid, and a string of American startups that align with conservative policy goals.
In an announcement on Tuesday, Aug. 26, Polymarket confirmed that it has received an undisclosed investment from 1789.
The announcement also revealed that 1979 Capital partner Donald Trump Jr. would join Polymarket’s advisory board.
“Polymarket is the largest prediction market in the world, and the U.S. needs access to this important platform,” Trump said in a statement.
“I am pleased that 1789 Capital is investing in Polymarket and am honored to join the company’s advisory board. I look forward to working with the team to advance its mission of bringing truth and transparency to everyone – including the U.S.”
What About Kalshi?
For Trump Jr., the new role at Polymarket mirrors his position at Kalshi, where he was appointed as a strategic advisor in January.
While it isn’t unheard of for someone to advise two competing businesses at the same time, Trump’s move to join Polymarket comes at a crucial time for the prediction market business.
While Polymarket dominates globally, the platform is banned in the U.S., allowing CFTC-regulated Kalshi to gain a crucial advantage.
However, following its recent $112 million acquisition of QCEX, a CFTC-licensed exchange and clearinghouse, Polymarket is preparing to make its U.S. debut imminently.
Further compounding the increased competition between the two platforms, Kalshi is making moves to encroach on Polymarket’s home turf.
The company recently appointed a new head of crypto who said he wants to double down on crypto event markets.
Trump Jr.’s Awkward Position
With Polymarket and Kalshi increasingly competing with each other, Trump Jr. may find himself in an awkward position.
For now, he seems happy to have his finger in both pies, in line with his general belief in the importance of prediction markets.
But he must proceed with caution if he is to avoid conflicts of interest, especially given 1979’s equity stake in Polymarket.
From a legal perspective, Section 8 of the Clayton Act bars individuals from serving on the board of directors of two competing companies.
However, the prohibition does not extend to advisors, as long as their appointment doesn’t raise antitrust concerns.
Top Trending Crypto Articles
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
