2024-10-12
Arkham Intelligence Inc., a blockchain
data company backed by investor such as OpenAI founder Sam Altman, is set to
launch a cryptocurrency derivatives exchange next month, according to Bloomberg.
The company is relocating its
operations from London and New York to Punta Cana, Dominican Republic, where
the new trading venue will also be based. The move comes as Arkham seeks to
expand its presence in the growing crypto market.
Following the news, Arkham’s
cryptocurrency token, ARKM, surged 19%, bringing its price to $1.52 and pushing
its market capitalization to around $344 million.
Founded in 2020, Arkham specializes in
analyzing blockchain data to reveal information about entities and individuals
behind cryptocurrency market activity.
Its major investors include Bedrock,
Draper Associates, Binance Labs, and Altman, according to data from Pitchbook.
The new exchange is expected to target retail investors and compete with major
platforms like Binance, Bybit, and OKX.
However, it will not be accessible to
U.S. users, as the company plans to operate under a free-trade zone license
from the Dominican Republic, which offers tax exemptions and other fiscal
incentives.
Arkham’s decision to enter the crypto derivatives market comes at a pivotal time, with the sector experiencing shifts due to regulatory crackdowns on Binance and the collapse of FTX.
Binance's dominance in derivatives
trading has slipped to its lowest level in four years, creating new
opportunities for competitors. In September, derivatives trading on centralized
crypto exchanges reached $3.07 trillion, accounting for 71% of total market
volume, according to data from CCData.
Arkham has been developing the
technology for its new exchange over the past year and is currently in talks
with investors in the Middle East to raise up to $100 million to support its
expansion. The company hopes to leverage its existing platform, which has
around 880,000 monthly active users, to gain traction in the competitive crypto
exchange market.
