Why size matters

Crypto currencies have been around for some time now but have literally exploded in 2017. Some will argue that we may well be in a bubble of gigantic proportion and this kind of debate will only be answered over time. However, the Blockchain technology that is underpinning these crypto currencies are just only starting to diffuse in the corporates. They are only starting to look for some use cases internally at a POC level. Not all of their processes will be able to be replaced or enhanced by Blockchain technology but we are pretty confident that this will be an “industrial” revolution of a size at least equal to the internet one if not bigger. This could revolutionize the way people contract with each other, something that have not really changed for ages.

We believe that not one Blockchain but several will emerge as true winners that will be attached to specific usage. The largest ones will be public for obvious reasons as trustability will play a decisive part in their adoption. Associated with those Blockchain, we will find the true winners in the crypto currencies. Because of their future main usages, these will become major world currencies in which regular payments, spending will be made. As with any future spending, planification will be necessary and saving product will need to emerge to fight off inflation of any kind.

Hence our vision is that we will see the emergence of not one but certainly several worldwide crypto currencies. This will certainly not be a smooth ride as technological breakthrough will be necessary to accommodate world’s numerous transactions and we are very far from this capacity right now. As with Intel doubling its calculation capacity on its chips for some years, we will witness such progress as more and more people will be incentivized to find solution as the technology will spread in the corporate world.

Institutional investors that are currently managing c. 75 trillion USD will at some point start putting some of these amount in the main crypto currency markets. They have to wait until the true winners emerge and the technology stabilize sufficiently before doing so. They also need to see markets of a minimal size before entering into them for liquidity reasons as once they start to diversify, hundreds of millions will pour in and will need to be absorbed. This will be very challenging.

Indeed, as of today there are very few options to invest in crypto currencies apart from holding the cryptos themselves. There has been the emergence of some hedge funds managing portfolios of cryptos but because of market liquidity constraints, these funds cannot really handle more than several tens of millions USD. The second alternative is private equity type of investment with the sharp rise in ICOs over the last few months. But this is very risky and not always very liquid. Other alternatives are fairly limited today, even though this might change in the future.

That is why we have developed NaPoleonX over three pillars:

· A team of ex-trading professionals having managed several billions, used to go thorough due diligence of large investors, and able to get/acquire an Asset Management license from a EU regulator,

· A focus on low frequency algorithmic trading of highly liquid assets only, to achieve high scalability, low execution risks and best performing techniques. Our team has developed this expertise over the past 10 years more and we currently have than 20 performing absolute return algorithms,

· A technique to tokenize quantitative strategies trading on real assets, so that performance and liquidity are brought back to the crypto-world, enabling to offer highly scalable investment solutions providing a return on your BTC or ETH.

We believe our project is very ambitious and is perfectly designed for when the large institutional investors will enter into this space. By the time we will also have a full set up, with regulatory approval, available products and track records. Any of this brick missing will be a turn off for any large institutional investor to invest in a fund. Moreover, we believe that Family Offices and Wealth Management clients will enter this market earlier and our project will also be appealing to them given our framework. At last, even current holders of large crypto portfolios could be interested for a solution that will help them generate a return over their cryptos bringing some decorrelation on top of it.