Why is Arkham (ARKM) difficult to explode?

Arkham (ARKM) is the project that caused a stir in the Crypto community in the past few days and today has officially been traded on Binance after distributing the Airdrop .

The following analysis of the Arkham project points to a few reasons why the project is unlikely to explode.

#first. Arkham chooses a niche with few potential users

For a project to truly explode, it must be accessible to the vast majority of ordinary users with minimal requirements. Take a look at the projects in the explosive trends (even if they are just following the movement) such as Play to Earn , Move to Earn … They are all easily accessible to all users just need a smartphone and willing to take the time.

But with Arkham, users must have in-depth knowledge of onchain data. Meanwhile, take a look at the latest survey results posted by BeInCrypto .

When asked about the interest in a project in the investment decision, only 3.6% of users prioritize Tokenomics and 6.9% of users prioritize interest in on-chain activity (Network and platform activity). . Meanwhile, users are mainly interested in risk issues, project finance and management team.

In fact, not most investors have onchain knowledge. So this model that Arkham calls "Intel to Earn" actually only serves a group of investors with higher expertise than usual. And if accessible projects like Axie Infinity (AXS) are taken as a measure of "explosion", then Arkham, if it exists for a long time, is unlikely to explode.

#2. Arkham chooses a development philosophy that is contrary to the wishes of most users

One of the fundamental philosophical pillars for the development of blockchain is transparency and anonymity. However, these two properties somewhat compromise each other for reasons of security and integrity of the blockchain. A transaction must be transparent (onchain data public) to avoid fraud and satisfy the immutable integrity of the blockchain, but at the same time must be anonymous (through encryption) to ensure security and private. Therefore, no one wants to be found out what and how much?

However, Arkham opened up a market for investigators to trade in such information. Arkham chose a development philosophy contrary to the wishes of most users.

With an information exchange called the Arkham Intel Exchange, users can place rewards for those who find the onchain information they desire. Most recently, wallet information Do Kwon, Sam Bankman-Fried and Elon Musk were hunted on Arkham with an offer of up to 10,000 ARKM. The offer is even larger, up to 100,000 ARKM for anyone who finds out the wallet information related to the FTX hack… Here, not to mention the authenticity of the traded information.

Arkham CEO Miguel Morel says the platform will help reduce scams. But it is impossible to know for sure what the user's intent is when coming to this platform?

As such, Arkham Intel Exchange is turning itself into a place of "fighting" with each other. Regardless of whether that user information is criminal or not, it does not break the philosophy of transparency and privacy.

#3. Arkham is making itself a test for opponents

Look in the market, there have been many units that have become onchain data providers for a long time and are still operating very efficiently (Glassnode, Nansen, CryptoQuant...). And these entities have no plans to issue a Token of their own. They still maintain the traditional form of fee collection and still call for investment Capital . These are Arkham's real potential opponents.

Arkham chose to Token Issuance through Binance Launchpad from the start.

• If Arkham fails, the confirmed opponents are right not to choose the direction of issuance and governance with Token.
• If Arkham succeeds, its competitors , which already have an onchain-savvy user base, will quickly take up market share.

Therefore, in this direction, Arkham is making itself a test for rivals. Taking the lead doesn't mean you'll have the advantage of success, but it may just be haste and foolishness. The latest announcement in May, Glassnode – blockchain data platform with 3,500 indicators – has reached 800,000 users with about 500 organizations.

#4. Arkham caused investor distrust from the start

Try to observe the attitude of investors who are really interested in the project. More than a week ago, the project was entangled in the controversy of collecting user information . Much evidence has been presented, but many investors still do not find it satisfactory. Many theories go as far as to try to attribute Arkham as a government platform to collect user information.

Regardless of the truth, just look at what users did for the Token received from the Arkham Airdrop .

According to Wu Blockchain, data from Dune shows that more than 90% of the Token Airdrop have been claimed. And 93.5% of these addresses are quickly sold on Uniswap or transferred to CEX exchanges like MEXC, Binance for sale.

Thus, in the short term, investors see ARKM as a way to hunt for Airdrop instead of holding because they believe in the long-term upside potential, as well as the success that the Arkham model pursues.