Could Arkham’s derivatives exchange really challenge Binance
Arkham's expertise in data analytics could improve the new exchange's security, transparency and user insight, allowing it to stand out from platforms that lack such capabilities
Arkham is launching a new crypto exchange with hopes of reaching over 800,000 users, but it will not be available in the US.
It undoubtedly plans to compete against Binance when it launches in November.
The move comes amid increased global demand for crypto derivatives, with trading volumes reaching over $3 trillion in September.
Tax and regulatory benefits: As earlier stated, Arkham will be operating from the Dominican Republic, which means the exchange will benefit from favorable tax laws and free-trade zone (FTZ) advantages. This may allow it to offer more competitive pricing and incentives for users outside the U.S.
Advanced derivatives products: Arkham’s new exchange aims to expose investors to a wide range of crypto derivatives, similar to futures and options on platforms like Binance. This includes contracts tied to popular assets, with potential offerings in smaller denominations, similar to products like Bitcoin nano-futures on other exchanges.
High-volume trading capacity: Arkham has had over a year to work on its exchange, so you would expect it to introduce something new to allow it to handle significant volumes. This will be crucial to gaining a competitive advantage in a booming crypto derivatives market that accounts for 71% of total crypto trading in September 2024.
Brand image and marketing: Arkham’s new exchange will enjoy the company’s brand reputation, which it has been actively building as a sentry of transparency within the crypto space. Outside the space, it has been busy as well. The €1.8 million sponsorship deal with the Turkish football club, Galatasaray immediately comes to mind. Partnerships like that are expected to enhance its visibility, making it an even more attractive option for users.
Investor support and growth plans: Arkham enjoys the backing of notable figures like Sam Altman and companies like Binance Labs, and so will its new exchange. There are talks about Arkham raising $100 million from Middle Eastern investors to expand its operations further. With such support, Arkham would need ineptitude at levels similar to FTX to even remotely be at risk of capsizing.
Blockchain analytics perks: Arkham is already famous for its blockchain data analytics platform, which monitors and analyzes blockchain transactions. Its background in data analysis could enhance the new exchange’s security, transparency, and user insights, allowing it to stand out from other platforms that lack such capabilities.
