Orhan 
Blockchain data company Arkham Intelligence continues to make waves in the crypto world. Recently, the company’s plans to launch a derivatives exchange and relocate to the Dominican Republic have been the subject of much discussion. Following these announcements, Arkham’s native token, ARKM, saw a notable 16% rise on Friday. This surge is closely tied to reports that Arkham is not only offering data tracking solutions but also venturing into the crypto derivatives market.
Arkham’s Derivatives Exchange Plan
Arkham’s trading platform aims to compete with major players like Binance, particularly targeting retail users. Derivatives exchanges facilitate the trading of complex financial products like futures and options. As the crypto derivatives market has grown in recent years, a CCData report shows that last month, the market recorded a trading volume of $3 trillion, doubling that of the spot market. However, major names in the sector have faced setbacks; FTX’s collapse and the weakening dominance of Binance have opened opportunities for new players to enter the space.
Although details about Arkham’s new exchange are still emerging, it has been confirmed that the company is closing its London and New York offices, moving operations to the Dominican Republic. This suggests Arkham is seeking a more favorable regulatory environment. Licensing processes and regulatory uncertainties are often crucial for crypto exchanges, and Arkham may be aiming for a more conducive environment with this move.
Arkham (ARKM) Investors
Arkham’s rising popularity is backed by strong investors. According to Crunchbase, the company has raised $12 million to date. Notable investors include OpenAI CEO Sam Altman, venture capitalists Peter Thiel and Tim Draper. Major crypto firms like Coinbase, Wintermute, and Digital Currency Group (DCG) are also among Arkham’s backers.
Arkham’s platform is a data analysis tool used to track blockchain transactions and identify the entities behind crypto wallets. Such solutions are critical for enhancing security and transparency in the crypto market. In 2022, the company also launched an on-chain intelligence bounty system, allowing users to earn rewards for identifying the entities behind specific blockchain addresses. ARKM, the native token used for these reward payments, currently holds a market cap of $420 million.
Sponsorships
Arkham has also ventured into sports sponsorships, signing a deal with Turkish football giant Galatasaray, expanding its presence in the sports world. This move aligns with the growing trend of crypto companies using sports sponsorships to increase brand awareness. Previously, firms like FTX and Crypto.com successfully reached wider audiences through sports sponsorships.
Future Prospects
Arkham’s entry into the crypto derivatives market reflects new opportunities in the sector. However, the crypto markets continue to face challenges, particularly due to regulatory uncertainties and trust issues following the collapse of major players. As seen with FTX, the downfall of large exchanges has led to a significant loss of confidence in the industry. For new ventures to attract investors, providing trust and transparency will be critical.
With strong investor backing, innovation in blockchain technology, and a strategy to increase brand awareness through sports, Arkham aims to play a significant role in the sector. However, the extent to which its entry into the crypto derivatives market will affect competition remains to be seen.
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