Source: Bloomberg
Arkham Intelligence Inc., a blockchain data company backed by OpenAI founder Sam Altman, is reportedly preparing to launch a cryptocurrency derivatives exchange next month, according to a person familiar with the matter cited by Bloomberg.
The firm is relocating its operations from London and New York to Punta Cana in the Dominican Republic, where both the company and the new exchange will be based. Following this news, the Arkham token (ARKM), which has a market capitalization of about $344 million, saw a 19% increase in value, reaching $1.52.
Founded in 2020, Arkham provides a platform that analyzes blockchain data to uncover information about entities and individuals involved in crypto market activities. Its investors include Bedrock, Draper Associates, Binance Labs, and Sam Altman, according to data from PitchBook.
The upcoming exchange aims to cater to retail investors and compete with major platforms like Binance, currently the world’s largest crypto exchange. The new venue will not be accessible to U.S. investors. Arkham plans to operate under a Dominican Republic free-trade zone license, which offers tax exemptions and other financial benefits; the company is in the process of securing this license.
An Arkham spokesperson declined to comment when contacted via email.
By entering the derivatives market, Arkham seeks to tap into a lucrative segment of the cryptocurrency industry, which has undergone significant changes due to regulatory actions against Binance and the high-profile collapse of its former competitor FTX. While Binance continues to dominate crypto derivatives trading, its market share has declined to its lowest point in four years. Other prominent exchanges in this space include Bybit and OKX.
According to CCData, derivatives trading on centralized exchanges reached $3.07 trillion in September, accounting for approximately 71% of total crypto trading volume.
Arkham has been developing the technology for the new exchange internally over the past year. The company has also been in discussions with investors from the Middle East to raise up to $100 million to support the expansion of this venture. With around 880,000 monthly active users on its largely free data platform, Arkham hopes to leverage this user base to attract customers to the new exchange.
In an effort to enhance its brand among consumers, Arkham recently secured a two-season sponsorship deal with Turkish football club Galatasaray in July. The agreement involves spending €1.8 million ($2 million) per season and includes having the company’s logo displayed on the players’ shirt sleeves.