Blockone launches a cryptocurrency exchange to compete with Coinbase and Binance The exchange will be known as Bullish Investors include Peter Thiel and other billionaires such as Louis Bacon and Richard Lee

According to Bloomberg, the exchange will invest about $10 billion in a combination of bitcoin (which accounts for about 90% of the investment), cash, and some of its own EOS tokens These tokens are currencies managed by Blockone subsidiary Eosio using its own blockchain The company claims to have over 400 apps that connect to and use its blockchain to record data

Peter Thiel said, "Bullish's balance sheet is strong, its vertical integration provides stability and liquidity in the cryptocurrency space, and we are pleased to join Bullish as an investor and advisor as it embarks on a long and fruitful journey" He stated

According to the company's press release, Bullish's goal is to allow clients to manage their portfolios using an automated tool with a clear record of every trade This tracking is part and parcel of using blockchain, where all transactions are recorded and can be viewed by anyone This removes the cost of expensive third-party functionality and should excite traders

Reading the press release and the Blockone website is an exercise in absolute frustration The site is filled with nonsense jargon, including double-speak such as "empowering people to build integrity in our world" It is this kind of jargon that makes people feel confused about blockchain technology and cryptocurrencies No effort seems to have been made to explain in English what the company actually does Currency exchanges are a bit clearer It is a place to trade various cryptocurrencies, and in Bullish's case, it uses tools to automate some of the transactions

At its core, Blockone is a software company looking for ways to do something with the blockchain One of them is a new transaction platform and a social network called Voice

Voice uses the EOS blockchain to create a new type of social media without the need to monetize content through advertising In a press release, Brendan Blumer, CEO of Blockone, describes it in a single-minded way

"The fact is, current social media platforms are designed to take advantage of users Look at our business model Our content Our data Our attention All of these things are incredibly valuable But today, it is the platform, not the user, that reaps the rewards By design, platforms operate by auctioning off our information to advertisers, who take the profits and flood our feeds with hidden agendas determined by the highest bidder

Blockone is renowned for one of the most explosive launches ever Instead of listing on a stock exchange or a traditional IPO, the company went "public" through an Initial Coin Offering (ICO); it raised an astounding $4 billion in an ICO in 2018 Those who invested at the start and held EOS tokens would have seen their value increase by 50% when the new exchange was announced It is now worth about $1219 per token, which is not the highest value

An interesting aside here is that the US Securities and Exchange Commission received a $24 million settlement from Blockone because Blockone violated federal securities laws by conducting an unregistered ICO; Blockone settled with the SEC but did not admit guilt Nevertheless, a $24 million settlement is chicken feed when it created $4 billion out of thin air