Newsletter — May 12th, 2021

Dear Napoleonians,

What a month on the crypto side! The Alt-coin season is well launched and has been definitely impressive. As was the ETH and its fresh new ATH. Be careful, however, markets remain unpredictable: maybe a good moment to jump in NapBots or soon Crypto Army ;-)

We are very glad to observe that our positioning on the institutional business 3 years ago was a good anticipation as we all can see on daily news that Tier1 institutions jumping in the crypto market.

The market is thus maturing and we are more than ever well-equipped to serve institutional crypto investment needs, particularly with our performing track record validating our value proposal.

Governance and Group evolution

The Group is now entering into a scale up stage, and we have to adapt the organizational side and use new tools as well to boost the development. This acceleration phase also impacts the HR with a massive commitment and recruitment. To reach this ambitious goal, the 3 co-founders agreed to renew the governance and Stéphane Ifrah left his executive functions mid-April while remaining associate. It closes a 1st brilliant page of the Napoleon Group’s history and we are proud to be well armed to leverage on our performing bots, infrastructure and accomplishments to scale up the Group.

We, Arnaud Dartois and Jean-Charles Dudek, are fully focused to reach the target in terms of business development and are pleased to announce that Florian Boret has joined us as the Chief Product Officer. Thibault Champel, an NPX token holder with an outstanding understanding of the crypto markets, will strengthen our ranks, interacting notably with our community. We are still hiring on the sales and marketing/communication part as well.

Last, we have changed our offices, being now located at 11 rue Paul Lelong, 75002 Paris (France). As always, please feel free to come and see us should you be in Paris once the covid crisis behind us (fingers crossed).

Performance analysis

April was a tough month for Bitcoin. Coinbase’s IPO, although very impressive, was overpriced by many and did not provide the desired traction. At the end we ended up with an additional month of distribution. Ether started a strong bull move fuelled by the arrival of institutional investors on the new future contract of the CME, by the development of staking which withdraws liquidity from exchanges, and by the forecast of the implementation of the EIP1559 (London Hard Fork).

In this context our algorithms have finally encountered what they lacked, a strong trend and cherry on the cake with a strong decorrelation between Bitcoin and Ether. They delivered a solid performance in April and continue this way so far in May.

From a macroeconomic point of view, the outlook is still as promising in the medium term, with a lot of interventionism from major central banks, implementation of recovery plans, … even if the revival of inflation is to be watched.

Sales report

We are glad to announce the fruits of our intensive efforts on the sale side, coupled with a strong performance of our algorithms, with the DAFs’ picture below in terms of AUM gross of fees, as of May 12th:

- DAF#1: 2.45M€

- DAF#2: pending

- DAF#3: 5.13MUSDT

- DAF#4: 2.15MUSDT

- DAF#5: 1.65MUSDT

- DAF#6: 0.38MUSDT

- DAF#7: 0.9MUSDT

- DAF#8: 0.4MUSDT

- DAF#9: 21.2M$

- Super DAF (pool): 0.14MUSDT

As a whole, we are reaching 35MUSDT and the trend is still very encouraging with a promising pipeline.

NPX Licensing rights

We are delighted to announce the DAF#9 with more than 20M$ and a 2% management fees. There are no performance fees on this DAF, but it will remain a nice contribution to the NPX Licensing Rights shall the assets under management keep an upward trend.

The license fee agreement will be updated to include this contribution for the next payment date (July 2021).

Marketing & Business development

We are in a process of complete websites revamping and target end of S1 to implement major changes. We are also working on new marketing materials and lots of interviews and conference participation aiming to increase the DAFs AUM.

As said, we are in a hiring process of a head of communication to harmonize the value proposal of the group as a whole, reinforcing the value proposal of the NPX token.

Last, we have announced the launch of Crypto Army, a brand-new crypto index platform. We will soon implement the NPX funnel payment, activating the burn mechanism. We will keep you posted as soon as possible on that.

Liquidity Pool

On top of HitBTC, we have decided to bring liquidity to the NPX pools on Uniswap and encourage thus the NPX transactions. This will be effective as of May, the 20th at the latest.

We are also considering positioning ourselves on the Binance Smart Chain, please let us know if you consider that as a real opportunity contacting Sergio.

Conclusion

As you can read, April and May are 2 very intensive months in terms of crypto markets, corporate governance and business development. We do thank you for your precious support.

As usual, please feel free to contact us on our Telegram channel should you have any questions.

Best regards,

Arnaud Dartois, Jean-Charles Dudek and the team.