Arkham Intelligence Pivots to Crypto Derivatives, Plans November Launch
Arkham Intelligence, a blockchain data analytics firm backed by OpenAI founder Sam Altman, is set to enter the competitive crypto derivatives market with the launch of a new exchange next month, according to a report by Bloomberg.
The company, known for its blockchain transaction tracking platform, is relocating its operations from London and New York to Punta Cana in the Dominican Republic. This strategic move comes as Arkham seeks to capitalize on the burgeoning crypto derivatives market, which saw trading volumes exceed $3 trillion in September, accounting for approximately 71% of total crypto trading volume, as reported by CCData.
Arkham’s new exchange will target retail investors and aim to compete with established players like Binance, whose market share has recently declined to a four-year low. However, the platform will not be available to U.S. investors, likely due to regulatory considerations.
The company is currently in the process of securing a free-trade zone license in the Dominican Republic, which would offer tax exemptions and other fiscal benefits. This regulatory approach aligns with the broader trend of crypto firms seeking favorable jurisdictions for their operations.
To fuel its expansion, Arkham is reportedly in discussions with Middle Eastern investors to raise up to $100 million. The company hopes to leverage its existing user base of around 880,000 monthly active users on its data platform to kickstart adoption of the new exchange.
The news of Arkham’s pivot to derivatives trading has had a positive impact on its native token, ARKM. Following the Bloomberg report, ARKM’s price surged by approximately 19%, reaching $1.52, with a market capitalization of about $344 million.
Arkham’s move into the derivatives space comes at a time of significant change in the crypto market, following regulatory actions against major players like Binance and the collapse of FTX. As the industry continues to evolve, Arkham’s entry could potentially reshape the competitive landscape of crypto derivatives trading.
