In the continuity of the end of 2020, the beginning of the year has been quite intensive for us. The crypto price action is still impressive, and we feel real pressure from investors to find adequate investment vehicles matching their needs.
In this context, we will come back on the monthly highlights for NaPoleonX and will conclude with the answers to the AMA session.
BTC and ETH pursued their route higher in January on the back of constant positive news flow. This is starting to look more and more like 2017 pricing wise and we can hope for much higher prices in the months to come.
Be prepared for a bumpy ride through and stay alert on our trading signal changes. Our strategies performed well in this context and our BTC ETH USD one manages to switch from BTC to ETH to benefit from both strong uptrend. At the end of the month, the BTC LO, the ETH LO and the ETH-BTC-USD LO have respectively generated a performance of 17%, 78% and 30%.
The crypto price action is born by new actors jumping into the market. We do live in very exciting times. Day after day, new Tier 1 players announce to diversify their assets by buying some cryptos. The latest Tesla’s crypto move is a major game-changer for all the corporates, and even Banks like BNY Mellon, which were looking at MicroStrategy or Square like Martians.
In this context, while the DAF#2 is still pending, DAF#1 has 1.7M€ of AUM and DAF#3 2.59MUSDT. On top of that, the DAF3 should have an increase of at least 0.5MUSDT mid-February.
Last, we are closing the launch of 2 more DAFs for mid-February with ad hoc strategies. Details will follow of course in the next monthly newsletter and the cumulated AUM for those 2 DAFs should exceed 1MUSDT.
We are also quite confident to close another DAF in March with a crypto fund impressed by our algos and the technology embedded to match their needs.
NPX Licensing right
As precise in the NPX Licensing right Addendum published in January, we are glad to announce that the licensing right payment has been sent before February 15th to the eligible holders.
About the non-registered NPX and their associated licensing right, we have decided to pool them within an “extra DAF”, in order to more incentive the eligible NPX holders. We do believe that it is a fair bonus to stake the NPX and a way to remunerate the loyalty.
We will launch that pool on February 15th and it represents currently 88k€ of AUM.
As you all know, the NPX token is now listed on HitBTC and Idex. No doubt that more liquidity will arrive soon on those exchanges. For those reasons, we should not keep the listing on Binance Dex considering the low volumes and will communicate soon on a token reverse swap.
The crypto adoption by institutional has started and we are very enthusiasts for 2021. As said, we will accelerate also on the marketing & communication part to establish NaPoleonX has a benchmark in the crypto investment industry.
You send us a lot of questions and it is time now to give answers as promised, being as transparent as possible. Again, we do thank you all for your support and will do our best have a successful year for the NPX community.
Stéphane, Arnaud and Jean-Charles
🔹 Does the team plan to release a roadmap for 2021 and beyond? (NPX token development, new features, token valorisation, marketing, etc)
Yes, we will, probably at the end of Q1 2021. We are indeed in a second stage of the development and will bring new functionalities to the token and push the marketing development of the project.
🔹 I love NapoleonX and I’ve been on the project since the beginning, please don’t neglect the token it makes you feel left out compared to the bots.
Thank you for your support. Our interest is aligned and we have no intention to run a minimum the project. On the contrary, we will make our best efforts to position NaPoleonX as a must in the crypto investment world.
🔹 (PFGT): 1 / (29800000 * (1 + T)) x 85% x N x PF
is it for the NPX holder or for the instits? I don’t understand the 85%?
85% is the share of the Performance Fees corresponding to the licensing rights granted to the 29 800 000 NPX as detailed in the Terms of the License. However, the formula has been updated to include the licensing rights linked to the Performance Fee mechanism. Please refer to the latest version of the Terms of the License available on www.napoleonx.ai
🔹 Could we have live AMA on Telegram group? If not this time then next
We can indeed organize a live session at the end of Q1 or beginning Q2 to answer questions about the beginning of 2021.
🔹 Will the NPXB-1E8 (binance dex) be aligned at the price of 0.001 eth like the npx on erc-20
One NPXB-1E8 equals one NPX, hence the alignment. However, we should not to maintain this token for liquidity reasons. We will soon release a swap back page on www.napoleonx.ai so that you can get ’n’ NPX to your preferred ETH address for ’n’ NPXB-1E8 brought to a BNB address that would be disclosed to you.
🔹 Do you plan to offer a discount on NapBots for NPX holders? Yes, I know that you can pay the bot with NPX but I’m talking about an extra bonus. Ps: why does the site ask me every day to revalidate the terms & conditions?
Yes, we are thinking about that and are open to suggestions. We would like to find a mechanism that would both (i) increase the value of the NPX and (ii) convince new users to use the Napbots service. We would like to put the community at the centre of this new strategy, so that by promoting the use of NapBots the community will help grow the customers base and thus pushing the value of the NPX.
The site tracks your acceptance to the T&C via a cooky. For a new session, it will ask again. We will correct that in Q1.
🔹 I have a question/suggestion for the team. Why don’t we bring the bronze, silver, platinum etc. account system back to the forefront by offering holders preferential NapBots rates based on their bronze silver etc. status? Being able to pay in NPX is one thing, but this accounting system would really put NPX back on the front of the stage via NapBots… What does the team think about it?
Great suggestion. We will definitively think about that.
🔹 “2021 ….a new payment right to use NapBots” Do you foresee the possibility of paying 100% of the Napbots subscription in NPX by 2021?
Cf previous question. Why not, if we can expect a positive impact on the customer base and for the NPX price.
🔹 How many DAFs do you plan to launch this year?
Considering the crypto rally and the growing number of reverse solicitations received, we are ambitious for this year. However, lots of complication (Regulatory, crypto winter,…) could also hurt and we prefer not to commit to avoid any disappointments.
🔹 I would like to know if you have a real demand from institutions for your strategies?
Indeed. The main hurdle is more on the structuring part. We are also working on the feasibility to launch an ETP or EMTN to get around some restrictions.
🔹 What amount (range) of aum do you expect to have under management at the end of the year?
🔹 When are the other 7 DAFs coming?
🔹 How often will the performance of DAFs finally be distributed? Will they still be distributed in ETH as planned or will they still be distributed in USDT as you see this currency in the admin panel?
To avoid conversion issues and since fees are currently perceived in USDT, NPX licensing rights will be paid in USDT from now on.
Please check our medium article Addendum of NPX Licensing Right mechanism: https://medium.com/napoleonx-ai/addendum-of-npx-licensing-right-mechanism-c29f65fd26d
🔹 “We are also considering launching a dedicated EMTN, which of course would be a new DAF, to match their needs.” Will NPX holders still be entitled to receive the perfs fees on the DAF1 after the 3rd DAF?
For the moment, it is not planned. However, most of the licensing rights come from DAF3 now and we expect this to grow even more so that it would have a limited impact.
🔹 How much will these dafs be endowed with? Will these sums be able to increase thereafter?
The AUM can increase with subscriptions and positive returns of the embedded strategies
🔹 I would like to know if DAF 1 will be transformed one day?
Not sure, for strategic/commercial reasons and for regulatory reasons also due to performance fees mechanism. The European Securities and Markets Authority (ESMA) has indeed published its latest guidelines on Performance Fees in UCITS and certain types of AIFs and it is not so crystal clear to be able to transform the fund. Moreover, the custodian and accountant are not so fond of. Last but not least, the DAF1 is a real market access and allows us to initiate a discussion with prospects and convert them to Bitcoin. It is always simpler to discuss about the underlying only rather to jump in directly into quantitative strategy.
🔹 How is it possible that the aum level of daf 3 is only 2.03Musdt when it was already 1.8Musdt in the last newsletter? Over this period, the value of bitcoin has been approximately multiplied by 2.
It is not a delta 1 fund on the Bitcoin. This one is the DAF1 (Napoleon Bitcoin Fund). In December, the BTC has generated a performance of 47% (cryptocompare source)
🔹 “In this context, our flagship product ETH.BTC.USD AR managed a gross yield of 501% and our historical BTC LO of 369% […]” Daf 1 is indeed the perf of 369% and 501% for the DAF 3?
The DAF1 aims to replicate the performance of the Bitcoin through the futures listed on the CME like a passive fund. Thus, it does not embed the BTC LO strategy. The DAF3 trades on its side a dedicated strategy designed especially for the client
🔹 What is the target in terms of DAF releases for 2021? Obviously it’s a goal and not commitment, but could we expect 5 running DAF or more? (no exposure funds)
As explained, it is difficult to firmly commit but indeed, we are confident to launch several DAFs this year.
🔹 Are the fees retroactive for those who have not filled the KYC?
No, we cannot, hence our several reminders to fill those KYC. By exception, we have accepted late KYC during January 2021 to get access to the share of Perf Fees generated by DAF3 in 2020.
🔹 Could we have access to the dashboard for the DAF’s performances (Like what we have on the strategy dashboard, but with the launch AUM + strategy performance applied)? Currently, we have to do the calculation by hand. It doesn’t have to be a chart, but for example, exposed simply with numbers: 2m AUM / 240 % Yearly / 1.45% Daily ect.
We will put in place a monitoring dashboard of the DAF, targeting end of Q1 2021.
🔹 Do you still accept funds under management (excluding DAfs)? What are the conditions of entry? Are these management contracts intended to be integrated into Dafs on a term basis?
We indeed accept managed account, starting from 100kUSDT. This is a singular activity since not regulated, with specific fees. DAFs are collective investment vehicles, hence the non-possibility to merge the managed accounts within DAFs. Besides, such managed accounts are usually of lower size than DAFs, so that 10 managed accounts would correspond to lower performance fees as a whole.
🔹 “Last, we need to be innovative as well on the investment vehicle structuring and are working on feasibility on alternative and lighter structures.” Are you talking about the legal side or the functioning of perf fees? What are the impacts on NPX holders?
We are talking about the investment vehicle structuring on that part, not on the performance fees, at least on the current set up.
🔹 Did you plan to go with a distributor to accelerate the Daf launch with external partners like Iconic?
Indeed, we are negotiating partnerships to accelerate the distribution side of the business.
🔹 Can people who have invested in a DAF buy NPX?
🔹 I would like to know how you see the year 2021 for the DAFs, i.e. the year 2021 will be a good year for the project where we have to wait until 2022 or 2023 or more before having an ROI worthy of the investment at the ICO?
We are confident but cannot firmly commit as explained (who can by the way?). We are in discussion with several distributors, including a well-known European insurer, hence our confidence.
🔹 Could you share with us long-term plans as to Napoleonx.ai if you won’t manage to rise expected AUM (I assume that would be at least 100 mio eur) in short term (this year)?
We are still planning to become the crypto asset manager of reference. We are part of several working groups about new EU regulations concerning crypto and blockchain (MICA, pilot regime, new AIFM). These regulations will be effective in a few years and shall convince institutional investors to enter the crypto market. As a pioneer, we expect to be well-positioned to seize this business.
🔹 What is the amount and status to invest in a DAF
100k€ or equivalent, being a professional investor for existing DAF. The initial threshold to launch a new DAF is 500k€.
🔹 What is the target in term of DAF releases for 2021? Obviously, it’s a goal and not a commitment, but could we expect 5 running DAF or more? (no exposure funds)
🔹 Is it possible to have a little more precision, please? For my part, I think you are doing a great job with the AMF but by waiting for them, aren’t we missing the train? What are the possible ways to challenge the whole thing? I’m thinking in particular of the Neo Banks, which were able to provoke the rupture without loss of dialogue with the authorities concerned.
Indeed, it is always a risk. However, in the long run, regulation will be a huge value driver and as a pioneer, we should benefit from that (see above). Meanwhile, we still think about enlarging the set of rights granted to NPX (see above).
🔹 After listing on new exchanges (planned to happen till the end of the January) do you plan further listings? More exchanges more visibility.
We are indeed thinking of being listed on several DEX’s as an alternative
🔹 Since the Defi took off, I have more and more difficulty understanding why your managed funds are called DAF. Either you intend to make them truly decentralized in the long term, in which case it is important to indicate this with a roadmap, or it is not and your communication is erroneous and needs to be changed. I really think that this point needs to be clarified quickly for a good reading of your project. Thank you
It is a fair point. DAF are not possible at the moment given the current blockchain infrastructure (DAF would notably need dex with very high trading volumes where the current winners are CEX like Binance). In fact, we need to adapt pragmatically.
🔹 Are we missing the trend of the DeFi?
From day 1 we have bet on regulation. Space is tight to look at DeFi while remaining on the road, but we are looking at this of course.
Category: Lost tokens Idax
🔹 Are you planning to burn the lost tokens on IDAX? If not why. If yes, how?
Because they are lost, they are synthetically burnt. We cannot burn them. The smart-contract managing the NPX is fully decentralized and we can’t give it “orders”.
🔹 I know it is the wrong place but could you find out whats about the NPX at idax.pro is? I guess you had a business contact with them. I can't reach the Platform for a month anymore and I can't find good reliable information on the internet. I was a participant of the ICO and had my NPX there to trade them.
Unfortunately, we cannot help. They ran away and even we have lost a lot of NPX.
After the AMA, we have received numerous positive feedbacks and constructive criticism from the community, which motivates us to deliver more and be more in touch with our community.
Please join our official telegram https://t.me/napoleonx_ICO and stay tuned