Arkham Intelligence, a blockchain analytics firm, is preparing to launch a cryptocurrency derivatives exchange aimed at retail traders in the coming month. The firm’s new platform will directly compete with established exchanges like Binance and operate under a license in the Dominican Republic, pending regulatory approval. This move reflects the growing demand for cryptocurrency derivatives, which has seen significant expansion driven by retail investors. In September, trading volumes in crypto derivatives exceeded $3 trillion, doubling from the previous year, as more products become available on major exchanges.
One of the driving factors behind the increased interest in cryptocurrency derivatives is the variety of products now offered on exchanges like the Chicago Mercantile Exchange (CME). For instance, CME’s recent launch of Bitcoin Friday Futures (BFF) contracts was deemed highly successful, with over 31,000 contracts traded on the first day alone. Additionally, Coinbase introduced “nano” Bitcoin futures, priced at one-100th of a Bitcoin, catering to traders looking for smaller fractions. Notably, the derivatives market now includes contracts linked to popular memecoins like Pepe and Floki Inu, listed on exchanges like Crypto.com’s North American derivatives platform, Nadex.
As Arkham Intelligence enters the cryptocurrency derivatives space, its native token, ARKM, has surged by 16% following the announcement of the upcoming exchange launch. The firm, known for its blockchain transaction tracking tools, has previously secured $12 million in funding from notable investors, including OpenAI founder Sam Altman. Last year, Arkham introduced the Arkham Intel Exchange, described as the world’s first on-chain “intelligence marketplace.” The platform aims to facilitate the sharing and trading of blockchain-related intelligence, creating opportunities for on-chain researchers to monetize their skills.
The Arkham Intel Exchange connects buyers and sellers of on-chain intelligence through a bounty mechanism. Users can request specific on-chain information by placing bounties, which are fulfilled by experienced blockchain researchers known as “bounty hunters” in exchange for payment. The platform addresses the increasing demand for on-chain analysis from traders, investors, journalists, and researchers, providing a marketplace for talented individuals to share their expertise. By enabling researchers to monetize their skills and satisfying the need for on-chain research in a scalable manner, the Intel Exchange seeks to bridge the gap between supply and demand in the on-chain intelligence economy.
Overall, the launch of Arkham Intelligence’s cryptocurrency derivatives exchange signifies the growing importance of derivatives trading in the crypto market, driven by the increasing demand from retail investors. With the success of offerings like CME’s BFF contracts and Coinbase’s nano futures, there is a clear appetite for diversified and accessible derivative products in the industry. As Arkham expands its reach into the derivatives space, its innovative approach to on-chain intelligence through the Arkham Intel Exchange demonstrates the firm’s commitment to providing valuable solutions within the blockchain ecosystem.
