Arkham Intelligence, a blockchain analytics firm, is preparing to launch a cryptocurrency derivatives exchange targeted at retail traders to compete with established players like Binance. The exchange is expected to launch as early as next month and will operate under a license in the Dominican Republic, pending regulatory approval. This move comes as the demand for cryptocurrency derivatives continues to rise, with trading volumes reaching over $3 trillion in September, double the previous year’s volume. Major exchanges like the Chicago Mercantile Exchange (CME) are offering an expanding variety of crypto derivatives products, with the successful debut of CME’s Bitcoin Friday Futures (BFF) contracts, priced at one-50th of a Bitcoin.
Coinbase’s “nano” Bitcoin futures and contracts tied to memecoins like Pepe (PEPE) and Floki Inu (FLOKI) are further examples of the growth in the derivatives market. Crypto.com’s North American derivatives exchange, Nadex, recently listed contracts for these popular memecoins. As Arkham enters the crypto derivatives space, its native token ARKM has surged more than 16% following the announcement. The company, known for its blockchain transaction tracking tools, has previously raised $12 million from investors like Sam Altman, the founder of OpenAI. With the increasing interest in cryptocurrency derivatives, Arkham’s entry into the market is timely and reflects the ongoing trend of retail investors entering the derivatives space.
Last year, Arkham introduced the Arkham Intel Exchange, described as the world’s first on-chain “intelligence marketplace.” This platform allows individuals such as traders, investors, journalists, researchers, and protocols to share and trade blockchain-related intelligence. The marketplace aims to provide a new way for on-chain researchers to monetize their skills and meet the growing demand for on-chain analysis in a scalable manner. The platform operates through a bounty mechanism, where users can request specific on-chain information by placing bounties that are fulfilled by experienced blockchain researchers, known as “bounty hunters,” in exchange for payment. Arkham’s Intel Exchange addresses the need for a platform that connects buyers and sellers of on-chain intelligence, creating a new market and opportunity for on-chain researchers.
Cryptocurrency derivatives trading has seen a significant surge in demand, with volumes reaching unprecedented levels in recent months. Retail investors are increasingly participating in this market, attracted by the variety of products offered by major exchanges like CME. The success of CME’s BFF contracts and Coinbase’s nano Bitcoin futures reflects the growing interest in derivatives trading. Additionally, the listing of memecoin contracts by exchanges like Crypto.com’s Nadex demonstrates the market’s diversification and innovation. As Arkham Intelligence prepares to launch its cryptocurrency derivatives exchange, the company aims to cater to retail traders and provide them with a competitive alternative to existing platforms, marking a significant milestone in the company’s expansion into the crypto derivatives space.
The growth of the cryptocurrency derivatives market highlights the evolving nature of the digital asset industry and the increasing interest from both retail and institutional investors. With the introduction of new products and services, such as the Arkham Intel Exchange and the upcoming cryptocurrency derivatives exchange, companies like Arkham are at the forefront of this transformation. By providing innovative solutions that cater to the needs of the market, these firms are driving the adoption and acceptance of cryptocurrencies and blockchain technology. As the industry continues to evolve, it is essential for companies to stay ahead of the curve and adapt to the changing landscape to remain competitive and relevant in the rapidly expanding cryptocurrency ecosystem.
