Arkham Intelligence to Launch Crypto Derivatives Exchange Backed by OpenAI’s Sam Altman

Arkham Intelligence Inc., a blockchain data firm supported by OpenAI’s founder Sam Altman, is preparing to launch its own cryptocurrency derivatives exchange next month. This new venture marks a major step for the company, as it plans to move its headquarters from London and New York to Punta Cana in the Dominican Republic. According to sources close to the project, the exchange will target retail investors but won’t be available to users in the U.S.

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Following the news of the launch, Arkham’s native token, ARKM, saw a 19% increase in price, bringing its total market cap to around $344 million.

What is Arkham Intelligence?

Founded in 2020, Arkham Intelligence offers a platform that tracks blockchain transactions and identifies key players behind crypto market activities. The startup is backed by major investors like Bedrock, Draper Associates, Binance Labs, and Sam Altman himself. Now, the company aims to expand into the world of crypto derivatives, competing directly with giants like Binance, which has seen its market share slip due to regulatory pressure.

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Why Move to the Dominican Republic?

Arkham’s decision to relocate to Punta Cana is strategic. The company plans to operate under the Dominican Republic’s free-trade zone (FTZ) license, which offers tax breaks and other financial incentives. This move allows Arkham to take advantage of more favorable business conditions, something crucial for new exchanges looking to grow quickly.

What is Crypto Derivatives Trading, and Why Does it Matter?

Cryptocurrency derivatives are financial instruments that derive their value from an underlying asset, in this case, crypto coins like Bitcoin and Ethereum. Trading in this space has boomed, with the total volume on centralized exchanges hitting $3.07 trillion in September alone. That’s about 71% of the entire crypto market volume.

While Binance still leads in derivatives trading, its share of the market has dipped to a four-year low, leaving room for competitors like Arkham to attract investors. Other notable exchanges in the space include Bybit and OKX.

Arkham’s Plans for Growth

Arkham has been working behind the scenes for the past year to develop the technology for its derivatives exchange. Now, it’s looking to raise as much as $100 million from investors in the Middle East to scale its operations. The company hopes to build on its existing base of 880,000 monthly active users from its blockchain analytics platform, which should help attract new customers to the exchange.

Brand Expansion: Sponsorship Deal with Galatasaray

In a bid to boost brand recognition, Arkham signed a two-year sponsorship deal with Galatasaray, a popular Turkish football club. The deal, worth €1.8 million ($2 million) per season, will put Arkham’s logo on the players’ shirt sleeves, giving the company more exposure on the global stage.

The Bottom Line

Arkham Intelligence is positioning itself to become a major player in the crypto market with its new derivatives exchange. Backed by strong investors and a solid customer base, the company is making big moves—literally—by relocating to a crypto-friendly zone in the Dominican Republic. While challenges remain, particularly in competing with established giants like Binance, Arkham’s growth strategy shows that it is aiming for significant market share in the ever-evolving world of cryptocurrency trading.

Also Read: Why Solana and Artificial Superintelligence Alliance Are the Best Cryptos to Buy in 2024