Arkham Intelligence to launch crypto derivatives exchange in the Caribbean

Arkham Intelligence Inc., a blockchain data firm, is set to launch a crypto derivatives exchange in November. As Bloomberg reported, the firm is charting its course from America to the shores of Punta Cana in the Dominican Republic. 

Backed by influential investors like OpenAI founder Sam Altman, Arkham Intelligence intends to compete in the crypto market alongside major players like Coinbase, Binance, BitMEX, and the defunct FTX. 

The crypto intelligence firm plans on offering “high-risk, high-reward” financial instruments to its clients. The Arkham token, a crypto known as ARKM with a market cap of about $402 million, has since been up 23% to $1.79 following the news.

Founded in 2020, Arkham runs a platform that analyzes blockchain data to provide insights about the entities and individuals driving activity in the crypto market. According to data on Pitchbook, the investor lineup features notable names such as Bedrock, Draper Associates, Binance Labs, and Altman.

Arkham Intelligence sets eyes on Punta Cana

According to reports, the Arkham Intelligence derivative exchange will focus on retail investors. The company aims to leverage a free-trade zone license in the Dominican Republic, which offers several tax exemptions and financial incentives. Unfortunately, U.S. investors will not have access to this new venue.

Even with Binance’s stronghold in the derivatives sector, its market share has recently plummeted to a four-year low. This slump has opened the door for new players, such as Arkham, to emerge in the market.

Also, in September, derivatives trading on centralized exchanges soared to $3.07 trillion. This accounts for approximately 71% of the overall trading volume in the crypto market.

According to a source, Arkham has been developing its exchange technology in-house over the past year and is currently engaging with investors in the Middle East to secure up to $100 million for further expansion of the venture.

The data platform, primarily available at no cost, boasts approximately 880,000 monthly active users, positioning it strategically for customer acquisition for the exchange.

In July, the company signed a two-season sponsorship contract with the Turkish football team Galatasaray in an effort to market its brand to consumers. The partnership will see it spend €1.8 million ($2 million) per season on the arrangement, with its branding appearing on players’ shirt sleeves.

Arkham’s contribution to the crypto market has been noticeable. The entity has served as a data watchdog that previously caught a whiff of Binance’s involvement with Bitzlato’s money laundering scam.