The new company, along with the firm’s intentions to relocate, are set to start in November.
Retail traders will be the primary target of the new derivatives exchange.
Launching a crypto derivatives exchange to compete with Binance and other competitors is a possible next step for OpenAI-backed crypto company Arkham Intelligence. The new company, along with the firm’s intentions to relocate, are set to start in November. This is according to an unnamed source familiar with the situation.
A large reorganization is in the works at the blockchain data firm that OpenAI co-founder Sam Altman and other investors support. Bloomberg said that it plans to relocate some of its operations to Punta Cana, Dominican Republic, from New York and London.
Stiff Competition from Industry Giants
Moreover, the firm has said that it would manage all of its operations, including its new venture out of Punta Cana. Retail traders will be the primary target of the new derivatives exchange.
Soon, Binance may face competition from Arkham Intelligence’s derivatives exchange. When it comes to trading volume, Binance is widely considered to be the biggest spot and derivatives exchange in the world. Binance has a spot volume of $12.7 billion and a derivatives volume of $47.6 billion, according to statistics from CMC.
It would take a lot of effort from Arkham Intelligence to compete with a company of this scale. Notably, the company has appointed executives with extensive expertise and understanding in cryptocurrency trading, which is a great start.
Formed in 2020, Arkham Intelligence has served as a platform for blockchain analytics ever since. Its principal function is to identify the businesses and individuals driving crypto market activity by studying blockchain data. Pitchbook data shows that over the last four years, the firm has received investments from Bedrock, Binance Labs, Altman, and Draper Associates.
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