Free option? Vanity? You get to know the books, the team, etc. And if before you ("VC") haven't been figured out the startup gets traction, you can find money to get in (maybe).
Bitmex.com has a market determined borrow rate, in times of market rallies it gets as high as +1% per day and can be as low as -1% when panic hits. They relay it without any markup, so there's only the bitmex credit risk left.
Eh, it's like saying bitcoin has no value because electronic payment systems exist. And while I understand some would indeed argue that's the case, to me _trustless_ prediction markets have great value, enabling eg autonomous AI enterprises, self settling smart contracts linked to the "off chain" world.
It is much easier and cheaper to set up a centralised fast settlement solution, so called RTGSS. Singapore had one for years, EMU getting one this autumn AFAIK.