Limitless Network: A New Player in the Prediction Market Arena

Limitless Network is an emerging contender in the rapidly expanding prediction market sector. Recently, the company successfully secured $3 million in a pre-seed funding round, which was spearheaded by 1confirmation, a well-known early-stage venture fund. Other notable investors in this funding round included Paper Ventures, Collider, and Public Works. This financial backing is significant as it positions Limitless Labs, the company responsible for developing the prediction market, to innovate and grow within the space.

Limitless Labs is building its platform on Base, a layer-2 blockchain network developed by crypto exchange Coinbase. This choice of technology is strategic, as it leverages the robust infrastructure and scalability that Base offers, allowing Limitless to handle a high volume of transactions efficiently. The recent funding is particularly timely, as interest in election betting, especially through cryptocurrencies, has surged. Platforms like Polymarket have seen nearly $1 billion in wagers on the upcoming U.S. presidential race, indicating a growing appetite for such speculative markets.

However, Limitless Labs is not primarily concentrating on election-related markets. Co-founder and CEO CJ Hetherington has indicated that the company’s focus lies elsewhere. Specifically, they specialize in short-term markets that expire quickly, often related to the prices of stocks or cryptocurrencies at the end of the trading day. For instance, on a recent Monday, one of their most significant markets invited traders to speculate on whether Coinbase’s stock would close above $175 at 4 p.m. Eastern Time. Hetherington draws a parallel between these markets and the popular zero-day-to-expiration (0DTE) options in traditional finance, which are known for their quick turnaround times.

One of the main attractions of these daily markets is that they allow traders to engage without having to lock up their funds for extended periods. Hetherington emphasizes this point, stating, “People love the daily markets because they don’t have to lock up their money for a long period of time to get some mediocre returns.” The immediate nature of these markets also contributes to high engagement levels among users, leading to a sense of community and recurring participation.

According to recent data, the average trader on the Limitless platform spends approximately four hours each week engaging with the markets. This statistic reflects a high retention rate, with about 38% of new users returning to the platform after their first week. Such user engagement is crucial for building a loyal customer base, especially in a competitive landscape filled with established players like Polymarket.

Despite its potential, Limitless remains relatively small when compared to Polymarket. A representative from Limitless noted that the platform is currently processing over $200,000 in daily transactions, while Polymarket boasts daily volumes in the tens of millions, as revealed by data from Dune Analytics. Furthermore, Limitless has not yet engaged external market-makers, although Hetherington has indicated that discussions regarding this are forthcoming, which may further enhance liquidity and trading volume on the platform.

Another interesting aspect of the Limitless Network is its approach to user-generated markets. Users with substantial social media followings have the opportunity to suggest their own markets. If their suggestions gain traction and appear on the Limitless homepage, they can earn rewards based on the trading volume their market generates. Hetherington remarked, “A lot of the most popular markets on our platform were not created by us. They were created by members of our community, and they’ve been earning money.” This innovative feature not only fosters community engagement but also incentivizes users to participate actively in the platform’s growth.

As the prediction market landscape continues to evolve, Limitless Network is positioning itself to carve out a niche with its unique offerings and community-driven approach. With ongoing discussions about external market-making and the potential for user-generated content, Limitless might just become a formidable player in the prediction market space.