Arkham Intelligence is making major moves in the crypto industry by planning to launch its own derivatives exchange, as reported by Bloomberg News. The platform’s native token ARKM saw a 12% surge in response to this news, reaching $1.51 at the time of reporting, marking a 16% increase over the past 24 hours.
The company is looking to relocate its headquarters from London and New York to Punta Cana, Dominican Republic, where it will establish its new platform. By securing a free-trade zone license in the country, Arkham will benefit from tax and fiscal advantages. The focus of the new derivatives exchange will be on retail investors, with plans to rival major players like Binance, Bybit, and OKX.
Interestingly, the exchange will not be accessible to US customers, as per sources familiar with the matter cited by Bloomberg. To further support its expansion, Arkham is seeking up to $100 million in funding from Middle Eastern investors. The company has already garnered support from prominent venture capital funds like Coinbase Ventures, Digital Currency Group, and Bedrock Capital, as well as notable individuals such as Peter Thiel, Tim Draper, and Sam Altman.
The decision to enter the derivatives market is strategic, as it is currently one of the most active sectors in the crypto industry. Crypto futures and options have witnessed significant growth in recent years, with the total volume surpassing $3.5 trillion in September on centralized platforms alone. This volume is substantially higher compared to decentralized exchanges (DEXs) and the spot market, indicating a lucrative opportunity for Arkham Intelligence to capitalize on.
Overall, Arkham’s upcoming derivatives exchange launch represents a significant milestone for the company as it aims to expand its presence and compete with established players in the industry. The move to the Dominican Republic and the exclusion of US customers are notable aspects of this development, signaling a strategic shift in Arkham’s operations. Investors and crypto enthusiasts will be closely watching how this new venture unfolds and its impact on the broader market.
