Backed by Sam Altman, the new platform targets retail traders and aims to rival major exchanges like Binance.
Arkham Intelligence, a well-known crypto analytics platform, is making a significant move by launching its own cryptocurrency derivatives exchange. This new venture is set to begin operations next month and aims to compete with major players like Binance. The exchange will be based in the Dominican Republic, operating under a free-trade zone license, which allows it to bypass certain regulatory constraints.
The new exchange will focus on retail traders, offering them a platform to engage in derivatives trading. Derivatives are financial contracts whose value is linked to the price of an underlying asset, such as cryptocurrencies. By targeting retail traders, Arkham hopes to capture a segment of the market that is often underserved by larger exchanges.
Arkham's venture is backed by notable investors, including Sam Altman, CEO of OpenAI. The firm has already raised $12 million and is in discussions to secure an additional $100 million from investors in the Middle East. This financial backing underscores the confidence investors have in Arkham's potential to disrupt the market.
Arkham is leveraging its expertise in blockchain analytics to develop the necessary technology and infrastructure for the exchange. Known for its blockchain tracking tools, Arkham is well-positioned to offer advanced features that could attract users away from established platforms like Binance.
Following the announcement of the new exchange, Arkham's token, ARKM, experienced a 16% increase in value, reflecting positive market sentiment. With approximately 880,000 monthly active users already engaged with Arkham's analytics platform, the company is poised to convert a portion of these users into traders on its new exchange.
