Sam Altman-backed company, Arkham Intelligence is preparing to launch its own derivatives exchange.
The crypto derivatives market has been healthy so far in 2024 and Arkham might have a fighting chance.
This encouraging environment gives long and short-term promise to $ARKM, its native cryptocurrency.
Investors should be wary of "sell the news" events on and around the official launch date a month from now.
Arkham Intelligence is reportedly planning to launch its own crypto derivatives exchange next month.
This is huge news for investors and traders alike.
According to a recent Bloomberg report, the exchange will focus on retail traders and is expected to compete with other major platforms such as Binance.
This move comes as a major opportunity as crypto derivatives continue to surge. It is also great news for investors looking for a cryptocurrency to accumulate before a boom.
Here are all the details of the incoming launch and how $ARKM (the platform’s native cryptocurrency) might react.
Arkham Intelligence is mostly known for being a blockchain analytics tool.
This tool simply helps track crypto transactions and identify wallet owners.
It was launched in July 2023 and quickly became one of the biggest blockchain analytics tools in the space:
Alongside others like Messari, CryptoQuant, Santiment and others.
This time around, the platform is making a massive pivot into the world of crypto trading.
By launching its own derivatives exchange, the firm now aims to provide a competitive advantage to other major platforms.
Bloomberg’s report cited an unnamed source, which stated that the exchange will be operational as soon as next month.
The firm is even in the middle of obtaining a license in the Dominican Republic, where it plans to base its operations.
This strategy will allow Arkham to enter the highly competitive market which has been growing exponentially over the past year.
Arkham Intelligence’s move is highly strategic, considering how the global crypto derivatives market has exploded in recent years.
So far, trading volumes have reached over $3 trillion in September 2024 and have shot up from $1.5 trillion in the same period a year ago.
This surge in demand is likely due to retail investors rushing towards these products in search of new ways to make a profit.
Another driver of this growth is the rising number of crypto derivatives products available across established exchanges.
For instance, the Chicago Mercantile Exchange (CME) recently launched its Bitcoin Friday Futures (BFF) on September 29.
It called this event the “most successful crypto futures launch ever.”
The debut saw over 31,498 contracts traded on its first day in a record-breaking event for crypto futures trading.
Another major factor in the rise of crypto derivatives demand is the introduction of memecoin-based products.
This month on 8 October, Nadex (Crypto.com’s North American derivatives exchange) listed derivatives contracts for Pepe and Floki Inu among others.
Moreover, CFTC filings from 7 October also show that other memecoins like Dogelon Mars (ELON) and BONK saw similar listings.
Memecoin derivatives launch
All of these factors make the crypto derivatives market more attractive to the average investor considering the sheer number of choices.
Looking forward, options on Bitcoin ETFs are expected to launch in the United States by early 2025.
As established, the crypto derivatives market is a massive one in the US and Arkham aims to tap directly into the rush.
This bit of news caused a major boom In the price of $ARKM, its native cryptocurrency according to data from Coingecko and CoinMarketCap.
The cryptocurrency has jumped nearly 20% over the last 24 hours before writing as illustrated.
Jump in ARKM metrics.
This jump indicates that investors have recognized this unique opportunity and are now jumping on the cryptocurrency.
All of this without mentioning the staggering 162% jump in the cryptocurrency’s trading volume over the last day.
Arkham currently trades at around $1.62 at the time of writing—but the real rally may not even have started yet.
According to insights from analyst Mansii on Twitter (X), the cryptocurrency could “fly” extra hard if we see a break above the $1.7 price level with a daily candle.
This sentiment was echoed by BB Terminal in a recent update.
The analytics platform notes that the 24-hour heatmap on the cryptocurrency shows that liquidity is mostly spread right below and above the current price.
This level sits between $1.6 and $1.7.
In essence, the major support and resistance for the cryptocurrency sits between $1.6 and $1.7.
Investors should consider watching for what happens next—if we see a break below $1.6, the bears might take control and push prices into a downward slope.
However, if we see a break above $1.7 (as Mansii says), Arkham could be poised for the next phase of a mega rally.
There is a valid tendency that the upcoming Arkham exchange launch might turn out to be a “sell the news” event.
However, the crypto derivatives market in the US appears to be highly strong and Arkham has a competitive advantage.
Said exchange, if launched properly, has everything it needs to survive.
This means that the short and long-term outlook for ARKM and its parent company remains validly bullish.
In the case of a "sell the news event", investors only need to be wary of price pullbacks on and around the launch date itself.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.