Arkham Intelligence, backed by OpenAI founder Sam Altman, is set to launch a new crypto derivatives exchange in Punta Cana, targeting retail investors.
Arkham Intelligence to Launch New Exchange
Arkham Intelligence Inc., a blockchain data company, is launching a crypto derivatives exchange next month. This venture is backed by prominent investors, including Sam Altman, the founder of OpenAI. The exchange aims to attract retail investors and establish a competitive presence in the crypto market.
Relocating Operations to Punta Cana
The startup is shifting its operations from London and New York to Punta Cana, Dominican Republic. According to an insider, the new location will serve as the headquarters for the company and its operations. The move coincides with the anticipated launch of the Arkham token, known as ARKM, which has seen a 19% rise to $1.52, marking a market capitalization of approximately $344 million.
Background on Arkham Intelligence
Founded in 2020, Arkham Intelligence specializes in analyzing blockchain data. The company provides insights into the entities and individuals involved in crypto market activities. Besides Sam Altman, other notable investors include Bedrock, Draper Associates, and Binance Labs. This diverse support bolsters Arkham’s credibility in the competitive landscape of cryptocurrency.
Aiming at Retail Investors
The upcoming derivatives exchange is designed specifically for retail investors. Arkham plans to compete directly with established platforms like Binance, which is the largest crypto exchange globally. However, Arkham’s new exchange will not cater to U.S. investors, focusing instead on international clientele.
Regulatory Framework and Tax Benefits
Arkham intends to secure a license through the Dominican Republic’s free-trade zone (FTZ). This license will offer several advantages, including tax exemptions, which will enhance the exchange’s financial viability. The FTZ’s benefits may provide Arkham with a competitive edge in attracting users and facilitating transactions.
Capturing Market Share
By launching its derivatives platform, Arkham aims to capture a significant portion of the evolving cryptocurrency market. This sector has seen substantial transformations due to regulatory actions against Binance and the high-profile collapse of FTX, its former competitor. Despite these challenges, crypto derivatives trading on centralized exchanges reached an impressive $3.07 trillion in September, making up about 71% of total crypto volume.
Building Technology for the Exchange
Arkham has spent the past year developing its trading technology internally. Additionally, the company has been in talks with investors in the Middle East, seeking to raise as much as $100 million for the expansion of this venture. The data platform currently has around 880,000 monthly active users, which could help boost the exchange’s customer acquisition efforts.
Strengthening Brand Presence
In a bid to increase its brand visibility, Arkham recently signed a sponsorship deal with Turkish football team Galatasaray. The agreement, worth €1.8 million ($2 million) per season, allows Arkham’s logo to feature on the players’ shirt sleeves. This sponsorship aligns with Arkham’s strategy to enhance its presence in the market and promote its services to a broader audience.
Looking Ahead in Crypto
As Arkham Intelligence prepares to launch its derivatives exchange, the company positions itself strategically within the crypto landscape. With backing from influential investors and a robust technology platform, Arkham aims to make significant inroads into the market. The upcoming launch is keenly anticipated by industry watchers, given the potential for substantial growth in the cryptocurrency sector.
Final Thoughts on Arkham’s Ambitions
Arkham Intelligence’s foray into the derivatives market represents a bold move in the crypto industry. As regulatory scrutiny continues to reshape the landscape, Arkham’s innovative approach may provide it with a unique advantage. Investors and users alike will be watching closely as the launch date approaches.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
