The 2020-established blockchain data analysing company Arkham Intelligence Inc. is all set to change the landscape of cryptocurrency trading with the launch of a new crypto derivatives exchange next month. The Sam Altman and Binance Labs-backed crypto startup is moving its base to Punta Cana in the Dominican Republic from New York and London.
The crypto startup is moving beyond usual blockchain analysis with the launch of this crypto derivatives exchange. As the company seeks to establish a trading platform, it is leveraging the free trade zone benefits of the Dominican Republic including the tax exemptions. The news has already taken the crypto market by storm, resulting in a 19% surge of Arkham’s native token ARKM to reach $1.52, ultimately causing a market capitalisation of $344 million.
At present, the crypto startup runs a platform that analyzes blockchain data and provides insights on entities involved in crypto activities. Arkham Intelligence has made a timely move to enter the crypto derivatives space as the industry leader Binance, one of its investors, is facing regulatory challenges while FTX has collapsed. Crypto Assets Data and Index provider CCData revealed that crypto derivatives trading on centralized exchanges were at a $3.07 trillion valuation in September, which is 71% of the total crypto volume. This underlines the market potential of crypto derivatives as Arkham starts a new one.
The OpenAI founder-backed crypto startup will be in direct competition with major market players like Binance by targeting retail investors. However, in line with the cautionary approach of other crypto firms, Arkham’s crypto derivatives exchange won’t be open to US investors as it wants to avoid the regulatory uncertainties of the US market. In recent times, many exchanges like OKX and Bybit have limited their services in certain countries, like the US.
The company is banking on its 880,000-strong user base on its blockchain data platform to launch the new crypto exchange, as it is in talks with Middle Eastern investors to raise $100 million. Earlier, Arkham had also forged strategic partnerships with the Turkish football team Galatasaray for two seasons to boost its brand visibility. The $2 million per season sponsorship deal hugely boosted Arkham’s brand value.
The news of Arkham’s crypto derivatives exchange comes at a time when the crypto industry is looking towards innovation and potential growth as there is growing interest in crypto-based financial products. This is further aided by the impending Bitcoin halving in April 2025. New trading venues like the one planned by the crypto startup Arkham could enhance the market efficiency and liquidity as institutional investors and retail investors stand to benefit from it.
The company's success will lie in its ability to differentiate itself from existing competitors like Binance by using its huge pool of blockchain analytics expertise to provide unique insights to crypto traders.