Blockchain analytics firm Arkham Intelligence is set to launch a cryptocurrency derivatives exchange as early as next month.
The new platform is aimed at retail traders and will compete directly with established giants like Binance, sources familiar with the matter revealed, according to a report by Bloomberg.
The exchange will operate under a license in the Dominican Republic, where Arkham is reportedly in the final stages of securing regulatory approval.
Demand for Crypto Derivatives Continues to Increase
The move aligns with the growing demand for cryptocurrency derivatives, a market that has seen rapid expansion in recent months, driven mainly by retail investors.
In September alone, crypto derivatives trading volumes soared to over $3 trillion, doubling from $1.5 trillion recorded the previous year, according to data from CCData.
The increased interest is due to the expanding variety of crypto derivatives products now available on major exchanges like the Chicago Mercantile Exchange (CME).
On September 29, CME launched its Bitcoin Friday Futures (BFF) contracts, which the exchange hailed as its most successful crypto futures debut to date.
The BFF contracts, priced at one-50th of a Bitcoin, saw more than 31,000 contracts traded on their first day.
Arkham Intelligence’s token $ARKM surged 16% after announcing plans to launch a crypto derivatives exchange next month
Looking at the 24h heatmap, we can see that liquidity is mostly spread right below and above current price, especially between $1.6-$1.7.… https://t.co/YlBVKmbDZP pic.twitter.com/qy3RBfswZG
— BB Terminal (@BB_Terminal) October 11, 2024
The success mirrors similar offerings like Coinbase’s “nano” Bitcoin futures, which are available in even smaller fractions, at one-100th of a Bitcoin.
The derivatives market’s growth also includes contracts tied to popular memecoins like Pepe (PEPE) and Floki Inu (FLOKI), which were listed by Crypto.com’s North American derivatives exchange, Nadex, earlier this month.
As Arkham expands into the crypto derivatives space, its native token, ARKM, has surged more than 16% following the Bloomberg report, according to CoinGecko.
Known for its blockchain transaction tracking tools, Arkham has previously raised $12 million from prominent investors, including Sam Altman, founder of OpenAI.
Arkham Launches Decentralized Intel-to-Earn Marketplace
Last year, Arkham unveiled the Arkham Intel Exchange, which it called the world’s first on-chain “intelligence marketplace.”
The platform is expected to create a new way for people to share and trade blockchain-related intelligence, creating a new market and opportunity for on-chain researchers.
At the time, the company said there is a significant demand for on-chain analysis from various individuals such as traders, investors, journalists, researchers, and protocols.
It also noted that a growing community of talented on-chain researchers needs a platform that allows them to monetize their skills.
The Intel Exchange tackles these challenges by connecting buyers and sellers of on-chain intelligence through a bounty mechanism. The company wrote in the announcement:
“Arkham’s Intel Exchange finally gives these talented researchers a way to monetize their skills, and meets the growing demand for on-chain research in a scalable way – by connecting both sides of the on-chain intelligence economy.”
The platform uses a bounty mechanism to do this. Users who need specific on-chain information can request by placing bounties.
These bounties will then be fulfilled by “bounty hunters,” experienced blockchain researchers who provide the requested intelligence in exchange for the payment.
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