The term “bullish” means a trader is optimistic that the price will go higher from where it currently is.
What Is Bullish Exchange?
On May 11, 2021, Block. The company that developed the EOS.IO protocol -- announced plans to launch a blockchain-based exchange called Bullish. The company describes the exchange as a platform that effectively combines decentralized and centralized trading infrastructures for improved performance. The goal is to develop a hybrid system that can thrive both automated market making and traditional order book mechanisms. The project leader believes that this approach will fortify Bullish against the limitations of both centralized and decentralized exchanges (DEXs).
In summary, Bullish looks to provide high and predictable liquidity, a compliant trading infrastructure, and blockchain-enabled transparency. Although this is not the first time exchange is attempting to enable a hybrid crypto trading platform, what makes Bullish stand out is the level of hype surrounding its introduction.
For instance, before Block. One’s announcement in May, there were no real indications that Block. One was planning to develop an exchange in the EOS blockchain. And yet, the company revealed that the project had already secured $10 billion worth of funding and onboarded prominent investors.
According to the information contained in the press release, the initial fund was raised from Block. One’s capital injection of 164,000 BTC, 20 million EOS, and $100 million. An additional $300 million was raised from a private funding round involving prominent investors, including Peter Thiel’s Thiel Capital and Founders Fund, Richard Li, Christian Angermayer, Alan Howard, Louis Bacon, Galaxy Digital, and global investment bank, Nomura.
Less than a month later, reports surfaced that Bullish had put plans in motion to go public via a merger with a special purpose acquisition company (SPAC), Far Peak Acquisition, headed by Thomas Farley, a former president of the New York Stock Exchange. As part of the deal, Farley would emerge as the CEO of Bullish, while the CEO of Block. One, Brendan Blumer, would serve as the company’s chairman. In essence, Bullish had moved from being a non-entity to becoming one of the most valuable crypto exchanges in under a month.
Interestingly, SB Northstar, the investment arm of SoftBank, joined the already long list of Bullish’s investors when it invested $75 million in July 2021. By the end of July, the exchange had launched a private pilot program to test its services. Bullish explained that participants would access some of the exchange features with simulated crypto assets and paper money. This program is slated to run between July 27, 2021, to September 13, 2021.
What Are The Features Of Bullish Exchange?
Below are some of the features that Bullish plans to implement:
Hybrid Order Book: As discussed earlier, Bullish plans to combine elements of an automated market maker with the strengths of a central exchange to create a proprietary hybrid order book with deep liquidity capability. In other words, the exchange features liquidity pools, as well as an order book such that it can meet up the liquidity demands of institutional traders.
Lending Tool: When Bullish launches, it will allow users to lend funds out to margin traders.
Portfolio Management Tool: The exchange provides an interface where users can monitor their portfolio, including the performance of their trades, assets deposited in liquidity pools, and those made available for margin traders.
Sophisticated Security Infrastructure: Bullish integrates cryptography-powered security safeguards. All transactions executed on Bullish are recorded on the EOS public blockchain. Therefore, the entire system will be verifiable. Also, it will support WebAuthn protocols for password-free authentication.