Permissionless prediction market XO Market raises $500K in pre-seed round

Key Points

1. XO Market raised $500,000 in a pre-seed round led by Cyber Fund and emerged as a winner at Celestia’s Mammothon hackathon.

2. The platform uses an AI-first oracle system to eliminate oracle capture, relying on trusted APIs and verifiable outcomes, with market resolutions determined by staked XO token holders.

3. XO Market employs an adaptive liquidity AMM (similar to Augur’s LS-LMSR) to bootstrap liquidity for niche markets, with plans to potentially transition to an orderbook system as adoption scales.

4. The launch comes amid growth in the prediction markets sector, with Polymarket raising $200M at a $1B valuation and Kalshi closing a $185M round at a $2B valuation.

5. XO Market is described as a hybrid between pump.fun and Polymarket, offering a permissionless approach compared to centralized gatekeepers like Polymarket or Kalshi.