Bullish, a crypto exchange based on EOS that is planned to launch in 2021, has been creating ripples not only in the crypto sector but also in the regular market.
Even though the exchange has yet to launch a live product, it has revealed ambitions to list on the New York Stock Exchange with a $9 billion first public offering, which is 10% higher than Coinbase’s initial public offering on Nasdaq.
We will examine the characteristics of this exchange and why it is regarded to be a future unicorn company in this article.
What Is Bullish Exchange?
Block.One, the firm behind the EOS.IO platform. They revealed intentions to launch Bullish, a blockchain-based exchange, on May 11, 2021.
The exchange is described by the company as a platform that combines decentralized and centralized trading infrastructures effectively for increased performance.
The objective is to create a hybrid system capable of supporting both automated market making and traditional order book procedures.
The project’s leader believes that by taking this strategy, Bullish will be able to withstand the restrictions of both centralized and decentralized exchanges (DEXs).
In short, Bullish aims to deliver consistent and high liquidity. A compliance trading infrastructure, and blockchain-based transparency. While this is not the first time an exchange has attempted to offer a hybrid crypto trading platform, what differentiates Bullish is the level of hype around its launch.
For example, prior to Block.one’s announcement in May, there were no concrete signs that Block.one intended to establish an EOS-based exchange. Despite this, the corporation disclosed that the initiative had already obtained $10 billion in investment and signed on key investors.
According to the press release
The inaugural amount was raised using 164,000 Bitcoin, 20 million EOS, and $100 million from Block.One. A further $300 million was raised in a private capital round led by Peter Thiel’s Thiel Capital and Founders Fund, as well as Richard Li, Christian Angermayer, Alan Howard, Louis Bacon, Galaxy Digital, and global investment bank Nomura.
Less than a month later, allegations arose that Bullish was preparing to go public via a merger with Far Peak Acquisition.
A special purpose acquisition company (SPAC) led by Thomas Farley, a former New York Stock Exchange president. Farley would take the helm of Bullish as CEO, while Brendan Blumer, the CEO of Block.One, would serve as chairman.
In essence, Bullish had grown from obscurity to become one of the most valued cryptocurrency exchanges in less than a month.
SB Northstar, SoftBank’s investment arm, joined Bullish’s already lengthy list of investors in July 2021 with a $75 million investment.
By the end of July, the exchange had begun testing its services through a private pilot program. Bullish indicated that players would use simulated crypto assets and paper money to access some of the exchange’s capabilities.
This program is scheduled to begin on July 27, 2021, and conclude on September 13, 2021.
What Are The Characteristics Of Bullish Trading?
Bullish intends to implement the following features:
As previously stated. Bullish intends to combine features of an automated market maker with the strengths of a central exchange to build a customized hybrid order book capable of providing deep liquidity.
In other words, the exchange is equipped with liquidity pools and an order book to meet the liquidity requirements of institutional traders.
When Bullish launches, customers will be able to lend funds to margin traders.
The exchange provides a user interface through which users can monitor their portfolios. Which includes the performance of their trades, assets deposited in liquidity pools, and those made available to margin traders.
Bullish combines sophisticated security features enabled by cryptography. Bullish transactions are recorded on the EOS public blockchain.
As a result, the entirety of the system will be verifiable. Additionally, it will support WebAuthn password-free authentication protocols.
What Are Some Of The Potential Benefits Of Bullish Trading?
Below are some potential benefit of Bullish Trading.
Service for Earning Yield
Because Bullish embraces the notion of liquidity pools. It needed to incorporate a compensation structure that incentivizes users to deposit funds against which other users can trade. As a result, users gain money when they make cash available to margin traders.
Infrastructure for Trading that is Compliant
Bullish is making a bet on its capacity to deliver completely compliant exchange services that could appeal to institutional traders. Bullish says in one of its documents that it intends to be completely regulated and licensed in Gibraltar.
However, there is no way to predict how its potential public listing will affect these objectives. Given that it may be required to operate under the auspices of US regulators.
Infrastructure that is scalable
To ensure speed and liquidity, the exchange has chosen a hybrid system. Speed and liquidity are non-negotiable for Bullish.
What Are The Potential Consequences Of Bullish?
Skeptics have expressed concern about the hasty manner in which this endeavor is collapsing. As previously stated, the exchange announced its intention to go public even before a live version of its product was published.
However, it is critical to realize that respectable investors and individuals, like Peter Thiel and Thomas Farley, have invested their financial resources and skills in this project. As a result, there are reasons to assume Bullish is making an attractive value argument.
Another topic of contention is Block.
A person’s track record. The corporation raised more than $4 billion in 2017 through the EOS Initial Coin Offering (ICO). The EOS blockchain was advertised as a potential Ethereum killer during this funding drive. However, four years later, EOS has yet to live up to the hype. Thus, when we consider EOS and Block.one’s track records, uncertainty may begin to sneak in.
Bullish’s choice to combine DEX implementation with traditional trading mechanisms is sufficient to ensure success. However, whether it lives up to this promise remains to be seen.