Blockchain analytics firm Arkham Intelligence is preparing to launch a cryptocurrency derivatives exchange aimed at retail traders. The new platform will compete with established giants like Binance and is expected to launch next month under a license in the Dominican Republic. This move highlights the increasing demand for cryptocurrency derivatives, with trading volumes in this market doubling in recent months to over $3 trillion in September alone. Major exchanges like the Chicago Mercantile Exchange (CME) are also expanding their offerings, such as the successful launch of Bitcoin Friday Futures (BFF) contracts.
Arkham Intelligence’s decision to enter the crypto derivatives space has caused a surge in its native token, ARKM, by over 16%. The company, known for its blockchain transaction tracking tools, has previously raised $12 million from prominent investors like Sam Altman. Last year, Arkham unveiled the Arkham Intel Exchange, the world’s first on-chain “intelligence marketplace.” This platform aims to facilitate the sharing and trading of blockchain-related intelligence, creating new opportunities for on-chain researchers to monetize their skills. The Intel Exchange connects buyers and sellers of on-chain intelligence through a bounty mechanism, allowing users to request specific information that will be fulfilled by experienced blockchain researchers.
The derivatives market’s growth includes offerings tied to popular memecoins like Pepe and Floki Inu, listed on exchanges like Crypto.com’s North American derivatives exchange, Nadex. The launch of products like Coinbase’s “nano” Bitcoin futures in small fractions has also contributed to the expansion of the market. Demand for crypto derivatives is driven by the increasing variety of products available on major exchanges. CME’s BFF contracts, priced at one-50th of a Bitcoin, saw significant trading volume on their first day, indicating the market’s strong interest in these offerings.
As Arkham prepares to enter the cryptocurrency derivatives space, it aims to target retail traders with its new exchange. The platform will bring direct competition to established players in the market and is expected to launch in the coming month. By securing a license in the Dominican Republic, Arkham is taking steps to ensure regulatory compliance for its operations. The surge in ARKM token price following the announcement reflects positive market sentiment towards the company’s expansion into derivatives trading. With the popularity of crypto derivatives increasing, Arkham’s entry into this space signifies its commitment to meeting the growing demand in the market.
The success of Arkham’s blockchain analytics tools and previous fundraising efforts position the company well to enter the cryptocurrency derivatives market. By leveraging its expertise in tracking blockchain transactions, Arkham aims to provide a reliable and secure platform for retail traders to engage in derivatives trading. The launch of the Arkham Intel Exchange last year demonstrated the company’s innovative approach to building on-chain intelligence marketplaces. As Arkham expands its offerings with the new derivatives exchange, it is poised to capture a share of the growing demand for crypto derivatives products among retail investors.
