Bullish

Core business model: The core business model of Bullish is to operate a regulated and audited global cryptocurrency exchange, aimed at providing a platform for digital asset trading that offers better returns and security. Its business model integrates the advantages of centralized finance (CeFi) and decentralized finance (DeFi), mainly reflected in the following aspects:

1. Digital Asset Trading Platform:

Provides buying, selling, and trading services for Bitcoin (BTC), Ethereum (ETH), and other digital assets. Emphasizing that its platform has market-leading order depth and consistently tight spreads, aimed at providing an efficient trading environment for institutions and professional traders.

2. Liquidity Provision:

The Bullish exchange is supported by its "substantial treasury," which enables it to provide deep liquidity and ensure smooth execution of trades. Through its unique "hybrid model," which combines the efficiency of centralized exchanges with the transparency of decentralized exchanges, it attracts a diverse user base.

3. Compliance and Security:

As a regulated exchange, Bullish prioritizes strict compliance, auditing, and governance frameworks. It has obtained a Tier 1 license and is audited by Deloitte, which enhances its trust and reputation in the digital asset space. Emphasize network security and hosting services to protect user assets.

4. The Promotion of Web3 and the Digital Economy:

Bullish firmly believes that the era of digital assets has just begun and is actively building products and services for the future. Bullish Capital, as part of the group, collaborates with a visionary team to support initiatives that connect the possibilities of traditional finance and the digital economy, providing strategic capital, industry expertise, and a wide network of resources.

The bullish profit model is mainly based on the trading services and related financial products provided as a digital asset exchange. Its core profit points include: 1. Trading Fees: This is the main source of income for cryptocurrency exchanges. Bullish profits by charging transaction fees on the buy and sell trades made by users on the platform. According to information from its official website, Bullish offers "0 maker fees" and "0- 0.03% taker fees." This means that there are no fees for liquidity providers placing limit orders, while a small fee is charged to liquidity consumers placing market orders. This fee structure is designed to encourage users to provide liquidity, thereby increasing the trading depth of the platform. Influencing factors: Trading volume is a key factor affecting fee income. The larger the trading volume, the higher the fee income.

2. Interest Income:

Unified Trading Account: Bullish provides a unified trading account that allows users to conduct spot, margin, and derivatives trading within a single account, and supports cross-collateralization. This means users can borrow funds for leveraged trading, and Bullish can charge interest on this. Automatic borrowing and repayment: The platform supports automatic borrowing ("borrow-to-trade") and automatic repayment, which allows users to engage in margin trading more conveniently, thereby increasing the platform's opportunities to earn interest. Capital Pool Management: Bullish has a "large capital reserve," which may be used to provide liquidity, support margin trading, and earn interest income from it.

3. Derivatives Trading Revenue:

Bullish offers derivative trading such as perpetual futures, including Bitcoin, Ethereum, and the CoinDesk 20 Index. Derivative trading typically has higher leverage and volatility, which can bring substantial trading fees and funding fees income to the exchange. Influencing factors: The activity level of derivative trading, market volatility, and funding rates are key factors affecting this portion of income.

4. API Service Revenue:

Bullish provides REST and FIX API interfaces, allowing institutions and professional traders to trade programmatically, place AMM orders, and monitor market and private data. Although the official website does not explicitly state whether there are fees for API access, high-performance API services typically attract high-frequency traders and quantitative funds, which indirectly increases the platform's trading volume and fee income.

5. Custody and Security Services Revenue:

Bullish emphasizes its robust custody architecture, independent audits by Deloitte, and a 1:1 asset reserve. While these are primarily aimed at building trust and compliance, high-quality custody and security services themselves may also become a value-added service, potentially generating related revenue in the future.

6. Investment Business Revenue:

Bullish Group not only operates exchanges but also includes investment business (Bullish Capital). Bullish Capital collaborates with visionary teams to provide strategic capital, industry expertise, and resource networks to support initiatives that connect traditional finance with the digital economy. This part of the investment activities may generate returns through equity investments, project incubation, and other means.

Diversification: The bullish profit model covers trading fees, interest income, derivatives trading, and potential investment returns, forming a relatively diversified income structure. Institutional Orientation: Its low hanging order fees, unified trading accounts, high-performance APIs, and emphasis on compliance and security all indicate that its profit model is primarily aimed at institutions and professional traders. This segment of users typically has large trading volumes, which can bring stable and substantial income to the platform. Liquidity Driven: By providing deep liquidity and tight spreads, Bullish aims to attract more traders, thereby creating a virtuous cycle that further enhances trading volume and profitability. Compliance Advantage: In the increasingly stringent cryptocurrency regulatory environment, Bullish's compliance (obtaining GFSC license and Deloitte audit) is an important competitive advantage that helps attract institutional clients with high compliance requirements and reduces potential regulatory risks.

Bullish, as a global digital asset exchange, has its core business in facilitating cryptocurrency trading, and therefore its operations directly impact the various cryptocurrencies listed on its platform. The most significant cryptocurrencies affected are Bitcoin (BTC) and Ethereum (ETH), as they are the most traded and liquid cryptocurrencies in the market, and they are also the main trading pairs on the Bullish platform.

1. The Impact of Bitcoin ( BTC ) and Ethereum ( ETH )

Providing liquidity and price discovery: Impact Method: Bullish provides strong liquidity for BTC and ETH through its "market-leading order depth and consistently tight spreads." This means that traders can more easily execute large trades at levels close to market prices without causing significant price fluctuations. This high liquidity helps facilitate more effective price discovery, allowing the market prices of BTC and ETH to more accurately reflect supply and demand dynamics. Specific impact: For BTC and ETH, Bullish, as an important trading venue, provides greater liquidity, which enhances the market efficiency of these two cryptocurrencies, potentially leading to smoother price fluctuations (under the same trading volume). This is particularly important for institutional investors, as they need to be able to enter and exit the market efficiently. Promote trading volume and market activity: Impact method: Bullish attracts institutions and professional traders to conduct spot, margin, and derivative trading of BTC and ETH on its platform. Its fee structure of "0 order fee" and low taker fee, along with features like a unified trading account, are all designed to encourage trading activities. Specific impact: The high trading volume on the platform directly increases the market activity of BTC and ETH. Active trading volume is often seen as a sign of a cryptocurrency's health and popularity, helping to attract more attention and investment. Impact of the Derivatives Market: Impact method: Bullish provides derivatives trading such as perpetual contracts for BTC and ETH. The derivatives market allows traders to engage in leveraged trading and hedge risks, which increases the demand and complexity for the underlying assets (BTC and ETH). Specific impacts: Derivative trading can amplify market volatility, but it also provides professional traders with more strategic options. Through the derivatives market, the price discovery mechanisms of BTC and ETH become more complex and may be influenced by more speculation and hedging activities. Compliance and Institutional Trust: Impact Method: Bullish, as a regulated and audited exchange, enhances institutional investors' trust in the cryptocurrency market. This trust is crucial for the long-term development of major cryptocurrencies like BTC and ETH. Specific impact: With the emergence of more compliant platforms like Bullish, traditional financial institutions and large enterprises may be more willing to enter the cryptocurrency market, thereby increasing the demand for BTC and ETH, and enhancing their status as a legitimate asset class.

2. Impact on Other Digital Assets

Listing and Liquidity: Impact method: In addition to BTC and ETH, other digital assets will also be listed on the Bullish platform. Once a certain cryptocurrency is listed on Bullish, an institution-level exchange with deep liquidity, it usually significantly increases the liquidity and tradability of that cryptocurrency. Specific impact: For newly listed or relatively small digital assets, listing on Bullish can bring broader exposure, attract more traders, and potentially have a positive impact on their prices. The liquidity provided by the exchange is one of the key factors determining whether these coins can be accepted by institutional investors.