NapoleonX, 2 years an ICO

Transcript

Oh well good morning everyone

I think I'm gonna do it in English it's much better for her the one that were not in this room the idea of this presentation was to talk about an IC o---- two years later so what happens when people basically both token what do they what did they get as of today and what will they get in the future which is even more important so I'm going to start by the ICO itself so we are not usual let's say blockchain project we have more traditional project because we the aim of our project was basically to build regulated asset management company so maybe we could have done this in the

that's a real world as opposed to is a crypto world but we decided that it was important for us to try to get some financing out of this community because what we want to propose is not let's say a standard asset manager but another manager that will be dedicated to crypto investment and basically we see ourselves as a bridge between this emerging economy and traditional financial world which basically is the place where you should get some financing if you have very good ideas so we decided that there was some let's say

opportunity for us because traditional actors especially two years ago did not want to be associated with this kind of asset so basically we thought that you know there is a need or they will be you need in the future to manage these these assets and nobody in the traditional asset space wants to do it so let's do it so we completed the IC o---- almost two years ago in February 2018 so now even two years ago now I can say that right at the very end where this window of opportunity basic closed because after that the first action on crypto was quite bad and it's very difficult to

raise money when the market are difficult it's the same in the crypto space as in the traditional finance world for example in 2007 to 2009 when the the market were very difficult for equities you could almost see no financing raising in this place and the user friend for this ICO was clearly to set up and capitalized the asset management company as as it's a regulated entity you need to show to the regulator that you are strong enough to operate for at least 3 years and our token is giving to rights as of today

the first one is and I have not really touched this yet but the first one is to give access to of token holders to trading signals so when you have to understand that Bianchi's asset manager deem let's say of cocoa business or of value proposal is a wrong quantity is around quantitative trading so we are not here to say well this so this morning I'm feeling good I'm gonna buy all this morning I'm feeling bad and I'm gonna sell what we really have developed internally is really an expertise in contrary initially on traditional assets and since to a little more than two years on

crypt was set as well and I will show you some some example after that so the first right was to give access to this trading signals so there were ten of them at the beginning nine on traditional asset and one on Bitcoin USD pair the second right which I think was one of the interest of our SEO is to get some revenue out of the asset management company so for the first ten Daffy so to frost in ferns that we would learn people would get 85% of the performance fee that we would be generating even though we are proposing some kind of let's say remuneration to off token we

were on a team as a security because the way it's been structured especially in France it's really a license in revenue as opposed to some kind of dividends that you would be entitled with with the token so it was a quite clever way to structure a tip it was quite a clever way to structure the token because we wanted to avoid all this let's every regulatory issue right at the beginning of the ico because it was very unclear the environment in which we were was quite unclear so we did not want to pull it this this fundraising with some additional regulatory issue so we structure the token this way what

have we done because now you know it's been two years since we've launched the IC o---- so of course we are in daily contact with our community which is normal because they financed us so far and we thank them for that and what have we done so the first thing that we've done two months post ICO is to launch our platforms on a podium X dot AI on which you can see the trading signals and so that was the first right of our token so just two months after the ICO we were already starting delivering on our promise since then what we've done is we've developed much more quantitative solution for all the crypto than BTC USD pair and also we've

expanded the number of strategy that we have on ba BTC USD so now on the Nepali X dot AR platform you have 11 different quantitative strategies dedicated to crypto plus the initial nine one so it was not let's say a part of what we should have done but we've done this let's say as a free gift Third Point is we have set up the asset management company so it was one of the basically two purpose of raising this fund and we managed to get the license on in March 2019 so a little more than one year plus ICO

so we we have a stand for from different IMF first point is that we've we've launched the first regulated fund that gives us as to that give access to crypto so this is not a fund that let's say implement one of our strategies it was a little bit it was a little step too far for let's say the the consumer that we are targeting and the customer that we are targeting our professional investor and for them stepping in the the Bitcoin market is already a big move further so we wanted to just launch a simple vehicle that gives them access to this market as opposed to going on

coinbase and buy some bitcoins why would they choose our solution compared to other solution that exists first it's a regulated fund so it's much easier in terms of investment process forum second we have a true custodian and not let's say a crypto custodian it's a truth regulated custodian like any other custodian for any funds that you can find in the world so that's very important for them they don't have the right basically to buy anything if it is not custard it's somewhere that was a big challenge because it's not that easy to find such such a custodian and just the way we've structured the fun just

two seconds basically it's managed using GME futures which it's very simple to explain when we go and see investor and it's not true investment directly in Bitcoin but really it's about getting exposure to this asset class and last point we've built a brand another startup and especially people people who have invested in us I've invested to a certain extent in a project so to do more let's say famous the project becomes the more success they can open to have on their own therefore token and on investment and

we've really managed to achieve this in the traditional finance world where we are really known and I can go in a lot of conference and even the big banks know who we are in this space so I'm just going to talk about our core value proposal which is the quad and I'm just gonna give an example of three families of strategies that we have developed it's just to give a flavor for what we are doing on a daily basis we are doing much more complex stuff on top of that but just to give an idea I think it was much better to look at let's say basic

family of of strategies the first one is a quite simple one which is basically when you have a medium term trend you buy when the trend is no longer bullish you just got to cash so very easy stuff and we'll see after what are we translate into performance for her for her for crypto orders the second one is basically when you have big terms in the market usually that there might be a reason but sometimes it's overdone and there is an incentive to buy these these dips of course you will not buy any time the Bitcoin goes down or either goes

down by two or three percent it has to be big enough that you step in against the market usually that's something that is not recommendable to do its to go against the market but in this case there is an incentive and this is something that we have measured over time and there's a true statistic that is in your favor and the third family of strategies that we've developed are more short-term trend following strategies that can go then can go long or short and basically if you want to go short in this market you have to keep your short over a very short period of time basically historically it has not paid off even in big bear market to

remain to remain bare so this is something that we have found basically data crunching and the end result because these are basically individual bricks that then I will use that we will use to this time design strategies that will be promoted to first off community because with their token they can have access to district to the training signals that are behind these strategies and you know this is for free that just need to register on a platform and this basically will also be the basis when we will start actively promoting the daffy and basically this strategy that I'm

showing behind is the one that we will use for the second fund that we will launch up fully somewhere around summer time so I don't want to commit too much but in terms of structuring it would be exactly as the first one that we've launched so a lot of URLs basically have been cleared now it's a question of raising some sums in money on that on that part the the the strategy that you can see here it basically that's the blue line it's log scale and the less colored one basically is the Bitcoin ETF so I'm combining basically the family one and family two strategies so

basically I'm adding these two signals and this is the combined signals as you can see let's say with historical data and once again that is past so it might not happen in the in the future basically this simple strategy enabled you or if you had implemented this strategy let's say in 2016 2017 2018 or 2019 you would have beaten a simple by an old strategy so buying bitcoins beginning of the year and holding until the end of the year on top of that cherry on the cake you would have reduced the volatility of basically your investment so I'm increasing the

performance and I'm reducing the risk so basically investor would have let's say gain on both side which is very interesting year-to-date we're almost on par with what the Bitcoin has done and I was looking yesterday we were even slightly ahead but you know it will change and these trading signals we've been publishing it live on our website since 30th of April 2018 so it's not only about back tests it's really about live trading since when we started publishing or displaying these signals the strategy has done more

than one hundred and fifty percent return when buying the Bitcoin and just holding it would have yield you a negative return that only with 29 trades and when I'm talking trades buy and there are two trades ie you enter the market and exited the market 14 times on average over the last two years so as you can see you don't need to be a professional trader spending 20 hours behind your screen to make some money you can do this just by buying from time to time Bitcoin the rest of the time you go into cash so that was just an example

of what we can do we have also another strategy that we really like a lot which is an allocation model between this time Easter Bitcoin USD it's based partially on this strategy on similar strategy for a surplus let's say an arbitrage strategy between ether and Bitcoin at the end of the day we are located between these three currencies and since we've launched the the second strategy which was in September 2018 so one and a half years ago basically this strategy gained more than 450 percent once again the the the trading signals were available on our

platform so this is not something that we are making up of course the backtest before that are just back tests but since then it's real live result and now an extension of what we have developed so far so I was talking about the the ICO project just to show first that as an IC o---- this is very important for us to deliver on our initial promises and we try to over deliver by adding new features such as the strategies that will not end visit at the beginning the second the strategy that we are putting forward our making money for early adopters which i think is the most important thing third we have achieved

basically to get this dysregulation and to launch the first fund and now it's a question of let's say taking the time to to launch the second the third and the fourth and so on and so forth and then they will start collecting some money normally they should get the first licensing fee around April this year so this is something that we have of course tell them tell our community and now basically because we had a lot of let's say IDs because managing a project is not only about delivering on something that we have promises but we have other startup of course we have a lot of

additional IDs and one of this ID is to launch a trading boat and I'm going to explain what I mean by trading boat first why did we came to this new project first thing is that for the strategy on Bitcoin it was quite easy to replicate because 29 trades in two years anyone in this room and you want behind your screen you can do this very easy the daily strategy I was referring to that allocates between ether Bitcoin USD that generated much more performance require that you trade potentially on

the daily basis since we've launched this strategy in September 2018 we generated something like 400 transaction you are now starting to enter into a different words in terms of execution so if you want to replicate and get this performance you need to be there every day to achieve this it's starting to be a little more difficult early on because of this our community requested that we provides an API with our trading signals of course we were cautious not to do that first because that's how IP and this is part of what we have sold into

this project so we we of course we are contributing our IP to the project but we don't want to give it away for free but we understood their request so that's the the the the first point that the difficulty to replicate the second one is that because we are traders we are the data crunching on a daily basis and we are also analyzing what is working what is less working we had some let's say kind of tricky markets in the second half of last year and where we had a lot of false trend on the upside on the downside and which was quite difficult for daily eth BTC USD strategy

that forced us to look at into smaller time scale ie instead of trading on the daily basis we started looking at what we could do on an hourly basis knowing that there is a cost to do that because the lower the time scale the more cost you may have so it's not because we are looking into smaller time scale that we are trading everywhere for 100% of the pot for you so we might be trading everywhere but we will not trade 100% of the pot for you there is a cause to trade but still we we have developed hourly strategies on our side we've implemented it for us so for proper trading and to do that we

have also been obliged to develop what we call our it man but this is really the nickname we are giving it internally it man is basically when you eat the market and as we are in quantitative trading I don't want to intervene in terms of trading myself so what we do is we generate automatically the trading signals but we also have I've developed an automated execution tool which is our eighth man having done that for us for own purposes we decided that at some point and because there was this let's say request from the community there was some interest to develop or to offer such capacity to external people and

that's when we decided to launch our first version of our training boats in May last year which was called Napoleon software which was an executable that you had to download on your computer do you had patoot to put it on a virtual machine because it has to be basically online whenever there's a new trading signal so it was quite a Russell basically to to operate but still we had some some clients on that and we got some feedback on what we were doing and you know it was making a nice wide enough that I even though it is difficult to operate it had some value what what does it allow you because I think that's really what is important is

what's the usage of this training but first you get access to our old library of strategies so 11 on the Nepali exited AI platform now we've developed five additional our list strategies so in fact we are proposing 15 different strategies on the most liquid crypto sort of top seven basically second what you can do is so you because you have access to these fifteen strategy you can mix them so you can create your own menu you're in control second you can set up your risk budget ie you decided you know you're gonna

trade $1000 for example on your account and last you connect your trading accounts so let's say that you know yo you want to train on bit mix you connect your bit mix account to our solution you select whatever mix of strategy that you want to operate and then everything works automatically you don't have to worry about anything of course you have to come back from time to time to see whether there is no let's say bugs around but normally they should not at least we also there's something that we are off also on entering and basically that's a way for you to use quite complex strategies because the one I was

the discussing is quite a simple one we have much more complex one you don't really need to enter into too much details if you don't want to but you can still use this strategy and on a completely automated basis and now so that was basically in May and we recon that you know TD the user experience was not very good and as we are that's a project manager for track entrepreneur we cannot basically be satisfied which is some with something that is technically working but it is not user friendly so we decided that we would switch from an executable that you can

download on your computer to a SAS version so basically now the service is the same in terms of functionality but the way it works is that you have now access to a portal web portal and so you can basically register there everything will work almost the same as before so you can register you connect the account on which you want to do some trading you have to generate an API key because we need to discuss automatically with your trading account you put some restriction in the API key ie we can not let's say withdraw money on your account which is quite safe if you think about it because

at the end of the day the money always stays within your account it's not like some other solutions you know you can think about it all for example they offer copy trading which molestar service looks like this but you are transferring your phone to their account in our case difference always stays within your control regardless of whether we are regulated you don't need to trust us really the money stays with you so now we have this 15 strategy in the first boat we didn't offer the hourly strategy now we are offering the early strategy and there are five of them and we have also much more simple let's say pricing model now it's a

monthly subscription and you have different prices depending on the complexity of the strategy that you want to manage and the starting price is seven-year whole per month so it's quite cheap of course there are a lot of kappa around this pricing but you know that's life but still it's quite cheap as a as an investment solution you can make payment in using a credit card so for the monthly subscription very soon we'll have also the possibility to pay in either because it's important for us that we are open to that and initial service was only payable in either here it's really a question of days and weeks before we also make this option

available it will be also mobile-friendly and you have to understand that to setup Europe let's say your trading account as you need to generate this API key from the the the crypto exchange on which you want to trade you need to go on your desktop so basically we took the decision that you would have to do part of the onboarding on a desktop once it's done with your mobile phone you can basically allocate directly - your strategies ie let's say that you know you're going to the restaurant and you know you have an existing mix of strategy you're not satisfied with it anymore

you can basically in one minute change your allocation play press update and it will automatically update this allocation mix in your portfolio so you you are completely on your own you don't need to be let's say a chained to your computer I myself use this service a lot of amateur myself I really love that and it's fantastic I don't have to be at my desk I can be anywhere and I can trade I can change my education once you've done this one time let's say subscription step then everything is quite easy to to implement the service is available on

five crypto exchange I'm pretty sure you know all of them soon it will be available on two additional ones you don't have the same strategy on all the exchanges as traders we are very careful that in order to be as close as possible to the let's say performance of the strategy that we are showing there is no big risk in terms of execution so for example on bitstamp you cannot go show because that's an exchange on which you cannot go short so certain mix of strategy will be available on Kraken where you can go short and long because it's not been designed for trading

we are only allowing low frequency strategy but for bid max BitFenix and balance you can have access to do full monty in terms of strategy mix so there is one step for you is you have to decide on which exchange you are comfortable to put your money and that's really up to you to do this let's say risk exercise and once you've chosen that then you will have a mix of strategy that will depend on the exchange on wall on which you want to trade this is just some print screen' about our service I think the best way to have a look at it is to go on the website or to go on your web ID and try it it's not

completely let's say a mobile optimized as of yet but all the functionalities are are there you will have a dashboard on which basically you can see an overview of your exchange on which you have position the position themselves and this is where you will be able to change your allocation very quickly once again in less than one minute you can update your your your mix and strategy you will have one section where you will have a description on all 15 strategy with some kpi's so it's important for you that you know you you would be following one of those strategy so it's important that you get some information about past performance and you also have

the release date so when was it actually let's say put live in terms of trading signals so if you want to have only all released version you have the information and the exchange you can really plug as many exchange as you want up to five and thousand seven now as a conclusion I wanted to say first we are one of the few wiser CEO to have deliver on its initial promise yes we're a little bit late on some of the items that we had promised but we are there and we have not missed any step on some of the point we have even over delivered

for example the trading strategies on crypto the ten additional one that we've developed were not envisage at the beginning and we've developed anyway this strategy has been performing quite well just last month we made new all-time I on almost all of them so at the end of the day what is important when you're investing in an asset manager or in someone providing you with some let's say fantastic strategies that they have to perform and we can prove that because if you go on our website we published trading signals on a daily basis of course you need some tokens to do to have access to them or you will be able to access to this strategy subscribing on user busines puts and we wanted also

to reward our community by giving a new right to the token so not only are we trying to deliver on our initial promises but we also offer delivering in terms of strategy but we are also giving a new feature to the token there will be people holding and pigs will be able to use them to pay for this new service so that's a way also to reward the community is to give a new right so it will have a kind of strange token from a legal perspective because first the first right is giving access to in front financial information the case second one is to give access to a revenue stream and the third one is to have a

token that can be used as a currency so if you were a lawyer you would scratch your head because in which category would you put this token it would be quite tricky but you know we don't care about that as long as it's legal it's fine and this is legal so we wanted to give this new feature to the token which should add more liquidity and let's say more interest in the future thank you very much for having listened to me and I hope you had a good last day at the ETH DC [Applause] if there is some question please feel

free shoot don't shoot the messenger yes in terms of new exchanges for the token itself this is clearly something that our community has been asking for quite a long time as let's say a project developer or project owner for me the value of our project is not in being listed in anywhere in any place the value of my project is to give feature to my token and to deliver on my promise having done let's say a lot of

development at some point yes we will go to another exchange but you have to understand that going on an exchange is very expensive and this is not very useful money for the project itself yes for the token elders in it might be important but you know we are adding a new feature to the token that should give some interest because if you can use this as a currency then let's say the liquidity issue that we have been asked by a buyer by our community is becoming a little bit less important but you know we always open to let's say being listed on additional exchange we are discussing with Jehovah on this subject as we speak nothing has been done yet but you know

of course we are doing we are looking at this honor on a regular basis not on daily basis and this is not all this was not a priority at some point it will become a little bit more priority for us you don't have free trials service there there is a free trial but you it's a let's say it's a fake trading so basically you can subscribe to the limited part of the service you will see the trade executed but they will not be effectively executed on an account so it's in a sense you can see how the boat

will generate the order when they will execute and you will be able to see the performance of this kind of paper trading except that you would be the one choosing the strategy that you want to operate okay and I have a second question about changing allocation let's say I want to use a BTC instead of either is it selling my user for BTC or its or future allocations that it will trade less easier and more BTC now as of today well we are just considering that either bitcoin is like current address asset and if you want to have your funding let's say anythi because you're

a true believer in Easter and then on top of that you want to add some trading that's feasible with our solution so you can have your running in either and then run our strategy on top of that we will not interfere with whatever friending that you have in the back my question was about funding reallocation the thing you can do on mobile maybe I misunderstood the reallocation is the reallocation between strategy so what who will not allow let's say that you are you have a funding mister and you're running a Bitcoin strategy you can change this Bitcoin strategy to a new strategy but we did the NAP bots will not allow you to change your funding your friending is your decision and you

have to go on your account with a separate device okay thank you thank you for your speech in regard of institutional investors and when do you think they will be really interested in using your decentralized autonomous fund yes well that that was the aim of our project is clearly to give access to this category of investor to crypto solution if we talk about let's say a

financial institution entering the market there are several ways to see whether they are entering under the market whether it's for our product or for other product because we are not the only one to provide even some kind of regulated sorry even some regulated solution if you look at the CMA market which is the biggest the world is exchanging the world where you can find for example mini S&P futures and if you look at the volumes on this on this venue the volumes on Bitcoin future i've been going up in 2019 the volumes were up 75 percent compared to 2018 and even

at the beginning of the year 2020 you also had a big jump more than 200% more yep you can just continue it outside there yes okay and you we had more than 200 percent increase compared to January the previous year so there is definitely big institutional that are entering the crystal market and clearly the one trading on the on the CME I'm not let's say individuals that are trading you might have a few but clearly due to the biggest actor on this market are traditional investor so there is clearly an underlying demand that is going that is coming you can also see this in the spreads so the the the

future spread that you have between the future and the and the base what we call the bases in the future market so it's kind of thick basically that's the difference in price between the future and the Bitcoin and it was a big pressure since June 2019 and the pressure has not fully can come down since then so you can see that clearly there is a big demand there the second part where you can see let's say big investor entering into the market is if you look at the portfolio of Bitcoin that owed more than 1,000 Bitcoin so it's a bit arbitrary but at least we have some statistic on that and in terms of number of portfolio that also mode that one hasn't Bitcoin it went up in let's say

similar order of magnitude as what we have observed in the seamy market so clearly the demon is starting to build it's a worldwide demand so as let's say an emerging actor we need to make ourselves known by the entire world so we are doing a lot of marketing digital marketing but you know it takes time this is not something that will happen overnight but the underlying demand the markets that we are targeting is starting to be there well thank you very much once again and I hope you had a very good day with York in Staunton right