Welcome to Fintech.xyz news site, we are interviewing Stéphane IFRAH, the CEO of NapoleonX.ai ( ai stands for artificial intelligence) , a french fintech company dealing with AI powered financial advice hosted in StationF in Paris, world’s largest startup campus.
F is Fintech.xyz
S is Stéphane
F: tell us about your company, how did you get such a strong company name ?,, Napoleon was a great strategist, wise move to name the artificial intelligence army bots after him .
S: Well, the story behind this name is threefold. First, Napoleon is a gold coin in France, the very symbol of saving. Second, he is the founder of the Ecole Polytechnique where both Arnaud and myself attended university. We met there not too long ago when attending an education program on bif data. At last, as you mentioned, Napoleon was a very good strategist and to go to the trading battlefield you’d better be led by such a guy.
F: you started in 2008 ? before bitcoin ?!!
NapoleonX is hosted at Station F in Paris.
S: Yes I started trading well before 2008, but of course not cryptos. I discovered cryptos a little more than a year and a half ago. I was and still am fascinated by the volatility in this market. By its youth also, which brings lots of opportunities.
F: there is a real crypto-war between tokens, things may happen anytime, one must be ready..
S: yes we’re in a jungle. A lot of new ideas are being floated around, few will succeed. But you can feel the energy of creation. Traditional business will be absorbed in this revolution, new ones will emerge. On our side we have taken the view to take an industry we very well know about and lead it to the future.
F: thank you, could you tell our readers what your system is proposing exactly ( and what is the difference between NapoleonX and Napoleon Crypto ?) could you cite some alternatives in the market ?
Read more about the ICO:
TOKEN NAME NAPOLEON X (NPX) ICO PERIOD JAN 22nd 2018 – FEB 28th 2018 NUMBER OF TOKENS 95 000 000 MINIMUM SUBSCRIPTION 0.3 ETH
CURRENCY ACCEPTED ETH, BTC, EUR
S: We want to create the 1st crypto asset manager.
We will be regulated and will specialize in quantitative trading. NapoleonX is the name of our project and NapoleonX will be the regulated asset management company created with part of the funds raised during the ICO.
There are not a lot of true competitors around as we have only seen the launch of funds and not asset management companies. These funds are specialized in the trading of cryptos one against the other.
We are proposing strategies both on cryptos and on traditional assets.
F: got you, so your solution will remove the middle-men , the traders, their time is coming 🙂 ?
S: The blockchain revolution will completely transform some businesses. This is really a tool that simplifies processes and cut into unproductive layers whilst doing this more efficiently. A deadly combination. But the finance industry will still be there, don’t worry. Jobs will simply be transformed.
F: interesting , seems a complex solution, but how it is working ? from where the data ( trade signals) is captured ? do we need real humans to add variables and live world data that may influence crypto ( tokens) price around the world ?
S: Well not everything can be automatized. To create trading algorithms, human will still be there. To connect the machines and the markets, human will still be there. To monitor the machines human will still be there. However, what is true is that we are living in a world full of data. There is value out there for those who are able to analyze and use them. Data scientist might become the new traders.
F: who developed the algorithms ? different persons ? will the algorithms be updated ?
S: I did develop these algorithms over the last 10 years. I have made regular evolution to them and will continue to drive this process although I will ask dedicated person to take care of that in the future. Using trading algos is a R&D intensive business. You should always invest to keep your hedge in these markets as competition is fierce.
F: so it may be the most intelligent crypto-trading advice system in the world ?
S: Well, one needs to be humble when it comes to trading the markets.
We are just bringing our longstanding experience to this brand new world.
Old recipes’ still to work very well in this young market.
F: ok and what are DAF’s ?
are Decentralized Autonomous Funds
S: DAFs are Decentralized Autonomous Funds, the modern version of traditional funds where you can automatize all the process from beginning to end.
We remove human emotions in this process.
F: ok, now explain us the papers, every Token issuer have only a whitepaper describing the project, you have … wait , a whitepaper , a goldpaper and a blackpaper !,
S: Well, we believe in the education of people, that is why we have produced more than 1 paper. Our whitepaper is of course around the project itself.
The goldpaper is about quantitative trading our trademark and the blackpaper about the actual quant strategies that we would use to launch the first 10 DAFs.
No one has come up with this approach that enables investors to anticipate future returns.
F:ok and are you planning to update the papers ?
S: The whitepaper is only used to launch the project. What will be updated is the blackpaper. In fact, all these strategies will be hosted on our future platform with lots of information to help investors decide on their own allocation.
F: Great !, now tell us about the business model, you get money for what ? and what users will get from it if they will participate in the ICO ?
S: We are raising money for 3 main reasons: (1) getting an asset management license (2) financing our future platform and (3) do some heavy marketing around our future DAFs to ensure success. In exchange, our participants will get trading signals to trade themselves and revenues. They will be eligible to 85% of the performance fees payable by the DAF.
F: interesting and it will really help them in their trading routine ?
S: Well when I started trading, I had no hedge so I was regularly losing and driven by my emotions. Now it no longer happens and that’s comfortable and more rewarding.
F: could you provide some examples ?
S: people will get signals if they want to trade equity market futures on a low frequency basis or if they want to trade the largest cryptos (ex BTC). No need to worry all day about your positions, they rarely change.
F: where the crypto-assets have to be traded in order to ‘connect’ them with NapoleonX ? can NapoleonX connect to other exchanges ( bourses) ?
S: Napoleon Crypto will only trade the most liquid markets because we want to manage size. The bigger the size, the more money you make. In terms of Exchanges, I’m pretty sure the environment will change dramatically in the future and that there will be concentration on these Exchanges. Traditional actors will enter this market and bring best practices and technology. We will remain agile on our side.
F: Nice, returning to the ICO’s, they are starting very fast in France, did you get the Tokenization idea recently or you were working on the product and started marketing recently, do you have a prototype of the product ?
S: We started this project a year and a half ago when the DAO was launched. We then matured it up to now. Of course raising money is very important for young start ups, so a lot of them are rushing in as long as it stays hot.
F: great ! nice to know that you have a ready beta product where people can test the software, many ICO’s are launching with only whitepapers….,
you can access NapoleonX at beta.napoleonx.ai ,
login = napoleonx
pwd = demo
S Yes, you can access it at beta.napoleonx.ai , login = napoleonx pwd = demo . It was important for us to demonstrate our capabilities to set up the infrastructure associated with the strategies we have developed. Every project should have an MVP.
F: ok and why you have selected to develop the solution on the blockchain ? what kind of blockchain did you select ?
S: We have selected the Ethereum blockchain because of the smart contract that it proposes. It enables us to automate our processes from A to Z. And quantitative trading is about automation once in production.
F: the Ethereum (ETH) price is near 1000 usd january 2018, why not just keep the money in ethers for speculative measures ?
S: Well our bills are in EUR, not ETH. But we will not convert all the money raised on day one. We will keep some in reserve and some other to launch our future DAFs.
F: ok, so it will have both functional and investment aims.
F: tell us now about the tokens and their distribution in %
S: 70% of the issued tokens will be sold, 2% will be distributed to bounty hunters that are helping us promote this project, 13% to our Advisors that are helping us succeed in passing all the stages of such a complex project and 15% will be for us, the NapoleonX team.
F: what will be token price ? are there bonuses ?:
S: 1 NPX will sold for 0.001ETH. However people will be able to contribute in ETH, BTC and EUR. For these 2, a daily conversion rate will be used. 20% bonus will be offered on first 24h of the ICO, then 10% until 10 million EUR is reached and then no more bonus up to 15 million EUR hard cap.
F: ok ,are there ways to work as affiliates ? maybe you are searching for potential partners / traders ?
S: Indeed. We have proposed the first 10 DAFs to really kickstart this project but after that, there will be a competition to propose the best algos at the best price to the NPX token holders. We believe in open competition and that starts by us being put In competition.
F: do you need some algorithm providers ? advisors ?
S: New algorithms will be required in a second stage. And we have really capable advisors. We are also very experienced people. But we will see in the future.
F: nice, now what are the general roadmaps ?
S: (1) complete the token sale, (2) launch our platform (3) get the asset management license and (4) launch the first in a series of DAFs
F: thanks for this info, now the most important information, what about laws ? are you going to be regulated ?
S: yes absolutely and that is a big difference with a lot of other projects. Managing third party is a regulated business, and rightly so. For the moment it is not really the case for crypto funds. But it won’t last. We will be regulated in France and have already started the process with our lawyers.
F: thank you, what languages you will going to support ? are you planning translating your system ? ( in Chinese ? Russian… ? )
S: that’s a tricky question. I guess it will depend on the spread of our customers. But you should expect the main languages to be available.
F: perfect,where interested parties could get more info about the ICO, could you communicate social media links ?
S: the best place to get info is on our Telegram. There’s always someone. To access it, just follow telegram.napoleonx.ai
F: ok and could you give use a hint where the tokens will be tradable after the ICO ?
S: A very hot topic. Well we are aiming for one or 2 top ten Exchanges within a few weeks post ICO. We have appointed Harold Kim to specifically assist us on this matter. He has successfully led NAGA and INS to this route.
F: great, thank you for responses, wish you good luck.
S: Thank you very much for your conviviality, hope to see many of you on board of our adventure.