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Blockchain analytics firm Arkham Intelligence is poised to launch a cryptocurrency derivatives exchange as early as next month. This new platform aims to attract retail traders and will be a direct competitor to established giants like Binance. Sources familiar with the situation revealed details to Bloomberg, indicating that Arkham is in the final stages of obtaining necessary regulatory approval in the Dominican Republic, where the exchange will operate.
Growing Demand for Cryptocurrency Derivatives
The launch of Arkham’s derivatives exchange comes at a time when the market for cryptocurrency derivatives is experiencing significant growth. With increasing interest from retail investors, this market has seen a rapid expansion recently. In September 2023, trading volumes for crypto derivatives exceeded $3 trillion, a substantial rise from the $1.5 trillion recorded during the same period the previous year, as reported by CCData.
The burgeoning interest can be attributed to the diverse array of crypto derivative products now accessible on major exchanges, such as the Chicago Mercantile Exchange (CME). Notably, on September 29, CME introduced its Bitcoin Friday Futures (BFF) contracts, which marked a successful debut with over 31,000 contracts traded on the first day. Priced at one-fiftieth of a Bitcoin, these contracts have proven to be highly attractive to a wide range of traders.
Market Response and Token Surge
The announcement of Arkham’s new cryptocurrency derivatives exchange has positively impacted the firm’s native token, $ARKM, which experienced a remarkable 16% increase following the Bloomberg report. Market data indicates that liquidity is concentrated around the current price point, particularly between $1.6 and $1.7.
This development is reminiscent of Coinbase’s launch of “nano” Bitcoin futures, which are even smaller fractions traded at one one-hundredth of a Bitcoin. Additionally, the derivatives market continues to grow with the inclusion of contracts related to popular memecoins like Pepe (PEPE) and Floki Inu (FLOKI), which were recently added by Crypto.com’s North American derivatives exchange, Nadex.
Arkham’s venture into the crypto derivatives arena is bolstered by its prior success; the firm has previously raised $12 million from notable investors, including Sam Altman, the founder of OpenAI.
Innovative Marketplace: Arkham Intel Exchange
In a bid to further innovate within the crypto space, Arkham launched the Arkham Intel Exchange last year, claiming it to be the world’s first on-chain “intelligence marketplace.” This platform was designed to facilitate the sharing and trading of blockchain-related intelligence, thereby creating new opportunities for on-chain researchers and analysts.
At the time of its launch, Arkham highlighted the growing demand for on-chain analysis from diverse stakeholders, including traders, investors, journalists, researchers, and blockchain protocols. The Intel Exchange aims to address this demand by connecting buyers and sellers of on-chain intelligence through a bounty mechanism.
The platform allows users to request specific on-chain information by placing bounties, which are then fulfilled by “bounty hunters.” These experienced blockchain researchers provide the requested intelligence in return for payment, creating a mutually beneficial ecosystem for both researchers and those seeking valuable insights.
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