NapoleonX Newsletter — April 26, 2018
By: Napoleon Group
Tags: Finance, News, Cryptocurrency, Investing, Bitcoin

It’s been 3 weeks since our last newsletter and a lot of things have happened. ETH went up 65% despite a 10% drop since the top 2 days ago. BTC went up a more modest 30% over the same period. So CHEER UP everyone, HODL has once again paid off.

Platform release

The most important news is the release yesterday of the first version of our Platform, right on schedule at less than 2 months post ICO. In it, you can now have access to our trading signals for the 10 DAFs presented in our Blackpaper.

We will collect your feedback in the next couple of weeks to assess what kind of changes will need to be made. So please send us your constructive feedback on our Telegram group. As you have noticed, there are several sections that will evolve over time. So what you see is only the beginning of the story.

New crypto strategies

Because we are continuously developing our value proposal, we have researched brand new strategies on ETH.USD and ETH.BTC pairs. We are in the process of integrating them in our Platform. As long as the first DAF has not been launched, they will be accessible for free with the same time lag rules as the other 10 ones.

NPX listing

We have said that once the markets would stabilize we would press ahead with the listing on the already identified Exchanges (HitBTC and Coinbene). These conditions have now been met and we are finalizing the listing contracts. We want to make sure that we are well protected against any delisting. Given the associated cost, this is the least that we should be doing to protect our interests.

Asset Management license

We have just met with our regulator to present our file to them yesterday and the meeting went pretty smoothly. Because the crypto subject is very new to the regulator, we will have to conduct it in several steps. The first step for them was to accept to have cryptos in certain investment vehicles. This is already something that they have accepted with another asset manager and thus we just need to understand and replicate the right operational set up. The second step for them will be to accept to launch investment vehicles that collects in crypto. This is not something that they have envisaged so far so we will work with our lawyers to get them comfortable. This will be a longer process though as their lawyers and their board will have to review the subject.

So the strategy to get the asset management license will be to apply for products that have already been approved to avoid delaying the process and work in parallel with them to accept investment vehicles collecting in crypto. Once we get the license, we will have the possibility to manage funds that may not be necessarily in French jurisdiction and that could allow us to collect in crypto. We have already identified some options and are working with our lawyers and potential counterparties to be ready when we get the license.

Timing wise, we might not be ready for June as anticipated but we should still be on target for a summer license. Indeed, now that we have exposed our case, we will formally fill in all the official form and then we will depend on their committees that happen once a month to get the approval. Given that summer is fast approaching and that they may not be fully staffed for summer months, we are cautious on timing. We went through this with our Financial Advisory license last summer already for Napoleon Capital and it was very frustrating.

Liquidity management

As part of our liquidity management, we have diversified our liquidity positions recently to benefit from the sharp ETH rebound. We have converted some of it in BTC and some of it in EUR so that we have sufficient liquidity for the foreseeable future on the corporate side.

I wish you all the best and don’t forget to HODL.

Stephane IFRAH, CEO