[NEWS] Blockchain analytics firm Arkham launches crypto derivatives exchange

Blockchain analytics firm Arkham Intelligence is set to launch a crypto derivatives exchange in November, Bloomberg reported on the 11th.

The new exchange will primarily provide derivatives services to retail investors, putting Arkham in direct competition with existing platforms such as Binance. Arkham is currently seeking regulatory approval in Punta Cana, Dominican Republic, as it seeks to relocate operations from London and New York and has not yet received approval for a business license.

Arkham is expanding its services in the crypto derivatives market, in addition to data analysis, and more retail traders are joining the fray. According to data, crypto derivatives trading volume exceeded $3 trillion in September, more than double the same period last year.

The crypto derivatives market has seen significant growth as trading products and platforms evolve. Some of the exchanges in this market are world-famous, such as Chicago Mercantile Exchange (CME) and Coinbase.

In late September, Chicago Mercantile Exchange launched Bitcoin Friday Futures (BFF) trading, with over 31,000 contracts traded on the first trading day of the two-week contract.

The BFF contract, developed as a trading option for small and medium-sized businesses, allows trading at 1/50th of the current price of Bitcoin (BTC), catering to the needs of the masses. Coinbase responded by introducing the "Nano" Bitcoin Futures contract, which allows trading at 1/100th of the current price of Bitcoin. This expanded the opportunities for retail investors to invest in the fluctuating price of Bitcoin.

In addition, the rapidly growing Crypto.com has also introduced derivative products including crypto assets such as PEPE (Pepecoin) and FLOKI.

Founded in 2020, Arkham Intelligence has raised $12 million from investors including OpenAI founder Sam Altman. The company has become well-known and has a strong presence in the blockchain space due to its on-chain data analysis. The company's platform is used by analysts, journalists, researchers and experts who need information on blockchain.

The price of the cryptocurrency ARKM rises

Apart from the Arkham Analytics platform, the company has a cryptocurrency called ARKM. The token has been volatile in recent weeks, but rose by 21.2% in a week following reports that it plans to enter the derivatives market. The price of ARKM has since fallen by 2.3%. Nevertheless, ARKM, a key component of Arkham, now has a market capitalization of $493 million.

Reference: Bloomberg
Image: Shutterstock

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