Polymarket’s new partnership with Elon Musk’s X – Userbase already checking out?

• Polymarket has partnered with Elon Musk’s xAI and X, boosting blockchain prediction market visibility
• Rising usage in sharp contrast with declining Open interest and criticism amid Trump–Musk tensions

In a significant move, crypto-based predictions platform Polymarket has entered into a strategic partnership with Elon Musk’s xAI and its associated social media platform, X (formerly Twitter).

The collaboration, announced by Polymarket CEO Shayne Coplan, positions Polymarket as the official predictions market partner for both X and xAI.

He said,

“The two top truth seeking apps on the internet are stronger together. Welcome to News 2.0.”

This alliance is a sign of the growing integration of blockchain-powered prediction tools within mainstream tech ecosystems. 

Polymarket makes waves

Polymarket surged into the spotlight during the U.S presidential race, emerging as the go-to platform for real-time political sentiment and probabilistic forecasts.

In fact, in the month of May, Polymarket recorded a trading volume of $1.103 billion – Marking its fourth consecutive month-on-month hike.

Worth noting, however, that this figure was still significantly below its December 2023 peak of $2.577 billion.

Similarly, while 145.7k new users joined the platform, the number of active traders declined to 277.7k, extending a four-month downward trend.

Open Interest, once soaring at $512 million during the height of the election season, soon dropped sharply to approximately $100 million. This is a sign of both the platform’s evolving user engagement and the cyclical nature of its market activity.

As expected, the announcement of Polymarket’s partnership with xAI and X has not been without controversy, coming on the heels of escalating tensions between U.S. President Donald Trump and Elon Musk.

Community reactions

Now, while many have praised the move as a step towards broader adoption and innovation in prediction markets, critics have been quick to question the motivations behind it.

For instance, one user on X voiced concerns over the alliance, hinting at underlying political dynamics and potential biases influencing the platform’s direction.

“wow now X is a gambling app.”

Such a mixed reception underscores the fragile intersection of technology, finance, and politics, particularly at a time when public trust and transparency are paramount.