Arkham Intelligence Inc., a blockchain data business funded by investors including OpenAI founder Sam Altman, intends to launch a cryptocurrency derivatives market next month, according to a person familiar with the project.
The startup is shifting its operations from London and New York to Punta Cana, Dominican Republic, where the company and its new venue will be situated, according to the source, who asked not to be identified since the plans were not yet public.
Arkham, founded in 2020, now operates a platform that analyzes blockchain data to provide insight on the businesses and individuals driving cryptocurrency market activity. According to Pitchbook statistics, it has investors including Bedrock, Draper Associates, Binance Labs, and Altman.
The exchange would target retail investors and compete with platforms such as Binance, the world’s largest cryptocurrency exchange, according to the person. According to the individual, the new venue will not accept US investment.
Arkham aims to run the platform under a Dominican Republic free-trade zone license, which it is currently obtaining, according to the individual. The Dominican Republic’s FTZs provide tax breaks and other financial advantages.
A spokesman for Arkham declined to comment by email.
Arkham’s launch of a derivatives platform aims to capture a profitable portion of the cryptocurrency market, which has experienced substantial changes since Binance’s regulatory measures and the high-profile bankruptcy of its former competitor FTX.
Binance continues to dominate crypto derivatives trading, but its market share has fallen to its lowest level in four years. Other major exchanges are Bybit and OKX.
As per Bloomberg, according to CCData, derivatives trading activity on centralized exchanges was $3.07 trillion in September, accounting for around 71% of total cryptocurrency volume.
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Arkham has been developing the exchange’s technology internally for the past year and is in talks with Middle Eastern investors about raising up to $100 million to grow the company, according to the individual.
Its data platform, which is primarily free, has approximately 880,000 monthly active users, which the company expects will give it an advantage in attracting consumers for the exchange, according to the source.
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