The Bullish Case for EOS
Block.one’s yearlong ICO for EOS raised over four billion USD in 2018. It was one of the biggest ICOs in history and EOS became the talk of the blockchain world. EOS targeted to remove major flaws of the Ethereum blockchain and it was touted as the Ethereum Killer. The mainnet was launched successfully in June 2018. The efficient DPOS network and fast TPS attracted a lot of users to EOS and it really surprised everyone with its better facilities. The developer community also grew rapidly and worked with great zeal to integrate the platform with the rest of the world. EOS had serious backers and it provided an improved way to create decentralized applications. Yet, it failed to kill Ethereum.
In the month of October 2019, EOS faced a mysterious so-called attack. A token named EIDOS was launched on this blockchain. EIDOS was basically a ‘waste-token’ (it still exists). It was designed to motivate the users to waste CPU resources. EIDOS got listed in several exchanges and trading activity provided fuel to the demand of the token. An extreme vulnerability of the network was exposed and no immediate solutions were found. Many DAPPs started to leave EOS. The promise of decentralization also wasn’t met properly. Many developers quitted EOS after not finding any funding support. The blockchain governance of EOS was generally controlled by big stakeholders of China and somehow it created a participation roadblock. Many grand assurances failed and we saw several controversies surrounding EOS. The cascade effect was visible on EOS price and it was ousted from the top ten cryptocurrency rank.
EOS is pumping again
EOS price is again soaring after a long time. Some rumours were active for the last few months and now there is concrete news. Block.one, the company behind the EOSIO software, has announced its plan to launch a new cryptocurrency exchange – Bullish. Bullish will be operational by this year and according to the official blog post, it’ll be “a new blockchain-based cryptocurrency exchange designed to combine the performance, user privacy, and compliance offered by central order book technology with the vertically integrated user benefits of decentralized finance (DeFi) market architecture.” The new exchange will offer AMM (Automated Market Making), lending-borrowing and portfolio management tools too. EOS is gaining due to the news. This is a bull market and such news really works well.
ProFi and the bullish case for EOS
Brendan Blumer, co-founder and CEO of Block.one, first used the term ‘ProFi’ to explain how to overcome various problems of DeFi. ‘ProFi’ is programmable open-source finance. We can already see that DeFi or decentralized finance has created a parallel financial channel and challenged the traditional financial system but the regulators will really hate DeFi. ‘ProFi’ is Block.one’s vision to bring mutual integration of traditional finance and crypto ecosystems and it is pro-regulatory in nature. How will ProFi be implemented? It’s not very clear as of now but Block.one always wanted to use its huge BTC portfolio.
Bullish Global, an independent entity under the Block.one parent company, will manage the planned release of Bullish exchange. Bullish Global has a capital of 164,000 BTC, 20 million EOS and $400 million cash received through strategic investment. PayPal co-founder Peter Thiel has also invested in this project. Bullish has been envisioned as a sheer size exchange and it is expected to deliver formidable trading volume from the beginning. Block.one’s official post says that Bullish will integrate its balance sheet with a vertical approach and here we can try to guess their ‘ProFi’ model. Will the balance sheet of Bullish provide liquidity to the AMM model? The proposed exchange will use the EOSIO software and run on the EOS blockchain. All transactions will be cryptographically validated and retain their immutable audit trail on the blockchain. An enormous asset is being programmed to flow on EOS. Block.one’s huge BTC reserve can’t stay idle and the bullish case of EOS seems to be clear.
EOS lagged in the last few years but the relevance isn’t lost at all. The stake-based voting and rewards proposal for EOS can materialize very soon and it can make the cryptocurrency more attractive for the investors. Bullish can create a new market architecture by providing a high-performance trading landscape on EOS. Institutional adoption of DeFi can never happen due to various compliance issues. Bullish can bridge the gap by providing a blockchain-based compliant platform. Combining the power of DeFi with market integrity, consumer protection and compliance can be really cumbersome but Bullish wants to bring that only. The EOS community is rejoicing now with the positive movement of price. This time they’ve high hopes.
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