Kalshi raising $1B at a $22B valuation.

I like Kalshi and Polymarket a lot, but can someone explain to me why they would need $1B and why $22B isn’t grossly overvalued?
This looks like a classic “we raised it because we could” round, not anything that structurally makes sense.
I get the circle jerk, but sadly this won’t end well for many of these institutional investors.
How do even the greatest founders not understand how important it is to price your company right and leave enough upside on the table?
Price drives narrative, and I only see this going down once it’s live. Which probably means yet another company with every incentive to stay private forever.