(Reuters) -Polymarket said on Tuesday Donald Trump Jr., son of the U.S. president, has joined its advisory board, and that 1789 Capital has made a strategic investment in the prediction market.

Prediction markets have gained traction in recent years, drawing both retail traders and prominent investors who see them as an alternative way to gauge sentiment on politics, economics and global events.

Proponents of prediction markets argue event derivatives offer a more accurate way to forecast real-world outcomes by harnessing the collective intelligence of traders with financial stakes in their predictions.

"Polymarket cuts through media spin and so-called 'expert' opinion by letting people bet on what they actually believe will happen in the world," Trump Jr said in a statement.

The contracts, which critics liken to betting, surged in popularity during the 2024 U.S. presidential election, with transactions climbing into the billions.

Founded in 2020 by CEO Shayne Coplan, Polymarket has helped popularize event derivatives trading. The company, which offers prediction-based trading on topics ranging from politics to popular culture, said users have placed $6 billion worth of trades on its platform in the first half of the year.

Polymarket did not disclose the terms of the investment by venture capital firm 1789 Capital.

Founded in 2022 by Omeed Malik and Chris Buskirk, 1789 Capital counts Trump Jr among its partners.

The Trump family controls a sprawling network of business interests spanning real estate, hospitality, golf resorts and media.