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TRKX - Trakx Token

White Paper

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Table of Contents

  1. Evolution not revolution

  1. Market
    1. Market observation
    2. Sizeable market in crypto
    3. Digital assets perception
    4. Digital assets adoption

  1. Trakx platform
    1. CTIs - making the difference
    2. Trakx - built for demanding investors
    3. Trakx covers the whole value chain
    4. A tech first approach
    5. Simplified flows
    6. Trakx product range

4. TRKX Token

  1. TRKX token utility
  2. Discount on fees
  3. Referral program
  4. Governance
  5. Buyback & burn program
  6. Distribution
  7. Issuance schedule
  8. Use of proceeds
  9. Lifecycle

5. Meet Trakx

  1. Meet Trakx business experts
  2. Meet the senior tech team
  3. Meet Trakx advisors
  4. Our ecosystem of partners

6. Trakx Timeline

7. Disclaimers

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Evolution not revolution

When I started my career back in 2004, it was clear to me that finance was moving towards a world without borders. The internet’s ability to overcome geographic constraints meant that cultural and economic barriers were being eroded. Countries were increasingly connected both in terms of trade and capital flows. The world, as they say, was flat.

While global financial institutions, like those I used to work for, were well suited to this environment, it struck me as incongruous that money, the base layer of tradfi, had not witnessed a similar innovation.

Perhaps that is why, when I first started hearing about something called Bitcoin (while it was in its infancy), rather than simply dismissing it as a tech plaything, I intuitively grasped its potential.

Of course, having potential is one thing, but what really mattered was whether the public would ever embrace such a radical idea as a cryptocurrency. This is crucial because for anything to have value, it must be widely accepted. The jury was still out on this question when I began sharing ideas with a small group of people who would eventually become co-founders of Trakx.

Even now, several years later, a common statement often heard in crypto circles is it’s “still early”. But equally in some tangible sense it is also “too late”. Just like the genie, cryptocurrencies and blockchain technology cannot be put back in the bottle.

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The sector may still be young, but it’s expanding rapidly as more people are coming to realize the inherent benefit of having digital money in a form that relies on the power of maths and code to maintain its integrity.

There have been setbacks along the way as 2022 demonstrated. However, this was entirely attributable to the dubious practices and behaviours of individuals, not to the technology. These bad actors are being ejected from the industry and governments are in the process of providing greater legal/regulatory clarity. This is something we at Trakx welcome because it is unambiguously good for the long-run health of the ecosystem.

My co-founders and I have taken time and great care to put together a fantastic team of employees, advisors and developers from all over the globe - each one a seasoned tradfi or tech professional - to develop a platform that puts our clients first. Trakx is on a mission to truly democratise access to crypto by providing everyone with seamless, safe and strictly compliant access to crypto-indices.

Crypto is not a revolution, it is just the next stage in the evolution of money.

I am excited by what comes next and hope that you will share the same bold vision for the future of digital markets as the team does!

Welcome to Trakx...

Lionel

Evolution not revolution

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Market

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Market observation

The ETF market has shown strong momentum with AUM reaching $10 trillion from virtually zero 20 years ago

Source: Bloomberg, Morningstar

Active vs Passive: Relative Performance Index

Historically, passive products have outperformed active products

Passive products are becoming the instruments of choice for market exposure because of their outperformance versus active products, along with lower costs and higher liquidity

Source: Statista

Development of assets of global exchange traded funds (ETFs)

from 2003 to 2022 (in billion U.S. dollars)

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Sizeable market in crypto

  • Transposing this approach to crypto-assets implies an addressable market for crypto indices of ~$500bn, assuming that only 5% of the crypto AUMs are allocated to indices

Crypto Index Products

could reach $500bn+

(~5% of Crypto AUM)

Crypto AuM could reach $10 trillion

(~6% of Global AUM)

Source: Bloomberg Crypto Outlook

Global AUM set to hit $150 trillion by 2025Source: Pension and Investment

  • To put things in context, the Global equities ETFs now represent over 15% of total Global equity assets, from almost zero 20 years ago

Index funds as a percentage of the market

Source: https://www.ishares.com/us/insights/all-about-etfs

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Digital assets perception

  • Despite the bear market in 2022, digital assets continue to benefit from increased adoption, improved perception, and more investment in Europe and the US.
  • The strong potential for growth, access to new technology, and diversification remain important decision factors.
  • Fidelity has made crypto investment accessible to all their clients

  • Blackrock has partnered with Coinbase to offer access to and custody of crypto assets

  • Invesco continues to expand its digital asset business and launch crypto ETFs

  • Trakx has launched its first ETP on the Top 10 Blockchains index

Total

Asia

Europe

U.S.

Source: Fidelity AssetsSM 2022 Institutional Investor Digital Assets Study

In favour of crypto

81%

84%

86%

74%

Private investors express their interest in buying crypto

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Trakx platform

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Trakx covers the whole value chain

Product launch

Liquidity management

Distribution via multiple channels (incl. Our exchange)

Index design

  • In-house index methodology and index management tool to offer only scalable products
  • Proprietary index management tool to manage the whole lifecycle of our products: creation, launch, listing, re-balancing…
  • Unbeatable time to market (a few hours to launch an index)
  • Trading bots: to make markets, source the underlying assets, move the assets with reputable custodians, and offer deep liquidity at the best possible price 24/7/365
  • Full control over the downstream: we can proactively test, launch, or retire CTIs to consistently stay current with market trends, ensuring that we always offer our clients the best market products
  • Owning our ecosystem allows us to 1) directly onboard clients (via our trading platform), 2) connect to various digital intermediaries and end-clients via APIs and 3) centralise all the flows which go through our products and reduce dependencies

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A tech first approach

Trakx’s automation and disintermediation reduces reliance on third parties and is more cost competitive

Liquidity

  • We apply a strict selection method to the underlying constituents for each of our CTIs (criteria based on market cap and daily volume)
  • Our trading bots are providing liquidity for all the trading pairs on the platform, ensuring sufficient depth on both the buy and sell sides

Index creation and management

In-house index methodology, construction, and management are open to third parties for externally managed CTIs via a user-friendly web UI or via programmable API calls

Automated hedging tool for best execution and to mitigate counterparty risk

  • Ability to move assets back and forth between exchanges and custodians
  • Full Integration with crypto exchanges, such as Binance, Kucoin, Coinbase…
  • Ability to customise default hedging behaviour and to hedge dynamic strategies automatically

Data quality

Data quality is crucial and our partnership with Kaiko ensures accurate and reliable live price data, with custom aggregation methods based on selected exchanges

Tech as-a-service solution is available through our white-labelling offering (please contact our sales team for details, sales@trakx.io)

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20 USDc

20 CTI 1

100 USDc

80 CTI 1

Simplified flows

Market leading custodian to store private keys

Neobank

Broker

Dealer

Private Banker

Traditional

exchange

Client A Wallet

USDc�CTI 1

Trakx.io Index Manager

80 USDc

80 CTI 1

Client B Wallet

USDc�CTI 1

Trakx Platform

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Trakx product range

Trakx offers CTIs for various investor profiles

Bitcoin Ether�50/50

Top 10

Crypto

Bitcoin

Simple Access

Thematic

Decentralised�Exchanges

Top 10 DeFi

ESG

Proof of Stake

NFT �Metaverse

Lending

Top�Blockchains

Interoperability

Centralised�Exchanges

Artificial Intelligence

Memes

Real World Assets

DePIN

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Trakx product range

Trakx offers CTIs for various investor profiles

Balanced

Growth

Conservative

Risk Profiled

Staked Matic

Staked & Yield

External indices and strategies are developed by third-parties and distributed on the Trakx platform

External CTIs

Smart Investing

Digital Inflation Hedge

Diversifier

Bitcoin

Control 15

Recovery

BTC

Momentum

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Trakx Token

(TRKX)

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The Trakx token, TRKX, is a key tool to grow the Trakx retail ecosystem. It will provide its users with access to a wide range of advantages and benefits, including:

  • Discount programs: up to 50% discount on trading fees, depending upon the amount of TRKX tokens staked
  • Referral programs boosters: from 20% to 35% fees redistributed for referrals, depending upon the amount of TRKX tokens staked
  • Grant programs: active community members will receive grants in TRKX tokens in exchange for specific actions & services (e.g. deposits and/or CTI purchases, trading competition…)
  • Governance: our community will get the opportunity to play an important role in key decisions, such as grant programs
  • Buyback and burn programs: 20% of the revenues derived from the retail trading business will be put in a vault and discretionarily used to buyback the TRKX tokens
  • Higher API trading rate
  • Other perks: priority access to new products (ie. alpha and bespoke products) & dedicated services (white glove, managed accounts…)

Trakx token utility

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Discount on fees

  • The Trakx discount program is composed of an eight tier system based on the Trakx token holdings and gives up to 50% trading discount.
  • The fee schedule depends on the total of TRKX traded volume during the preceding 30-day period (in USD equivalent). Thus, the benefits start at the end of the 30-day holding period and recalibrate every 30 days.

  • On the basis of 1 TRKX= 0.06 USD

Tier

TRKX staked

(USD equivalent)*

Discount on Taker &

Maker Fees

Regular 1

$0

0%

Regular 2

> $100

5%

Regular 3

> $1,000

10%

Regular 4

> $10,000

20%

Vip 1

> $50,000

25%

VIP 2

> $200,000

30%

VIP 3

> $1,000,000

40%

VIP 4

> $5,000,000

50%

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Referral program

  • Up to 35% fee redistribution
  • If a new user registers via a unique referral code, the referrer will receive 20%–35% of their fees, and the referee will receive a 5% refund. The referee will benefit from the fee redistribution for one month only.

Level

TRKX staked (USD equivalent)*

Fee redistribution rates

Level 1

$0

20%

Level 2

> $250

22%

Level 3

> $500

24%

Level 4

> $1,000

26%

Level 5

> $10,000

28%

Level 6

> $50,000

30%

Level 7

> $250,000

32%

Level 8

> $1,000,000

35%

  • On the basis of 1 TRKX=0.06 USD

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Governance

  • Along with economic benefits, the TRKX token will play an important role in the Trakx ecosystem governance.
  • TRKX token holders will have the right to vote on key proposals, such as incentive programs, grant programs, allocation of TRKX tokens, allocation of fees generated by the platform.
  • Holders will be able to delegate their tokens to the most active community members.

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Buyback & burn program

Through our buyback and burn program, Trakx is committed to supporting both the value of its token and the project’s long-term success.

  • 20% of the revenue derived from the retail trading business will be transferred into a vault, comprising both stablecoins and TRKX tokens
  • This vault will be used to buyback or sell TRKX tokens on the markets when required. This model aims at ensuring that the TRKX public price is in line with the value perceived by long-term TRKX holders
  • Buyback programs will not occur on a recurring basis. Like for listed equities, internal research will be required to assess the value for long-term holders and the timing of buyback programs

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TRKX distribution

  • The TRKX token distribution follows industry best practices
  • Our community will receive the largest share and will be incentivized and rewarded with targeted airdrops, discount & referral programs

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TRKX supply

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TRKX issuance schedule

  • To align individual interests with the long term success of Trakx, our team members will undergo the longest vesting period of 36 months
  • Vesting from investors in the private sale will range from 6 to 18 months
  • Tokens will be gradually distributed to the community over 8 years, ensuring a smooth project decentralization

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TRKX token sales use of proceeds

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TRKX lifecycle

Trakx team is committed to offer a best-in-class token strategy through the TRKX lifecycle, in line with industry standards:

  • Listing: making TRKX available on secondary markets (both centralized & decentralized exchanges) – talks already engaged with reputable centralized exchanges
  • OTC desk: opening a dedicated desk for large over-the-counter trades
  • Market-making: ensuring the TRKX token is liquid and spreads are low on secondary markets – talks already engaged with external market-makers
  • Buyback & burn Model: 20% of trading fees will be transferred into a vault comprising both of stablecoins and TRKX tokens. This vault will be used to buyback or sell TRKX tokens on the market when required. This model will aim at ensuring that the TRKX public price is in line with the value perceived by long-term TRKX holders

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Meet Trakx

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Meet Trakx business experts

Lionel Rebibo

CEO - CO Founder

Laurent Barocas

Co-founder and Chief

Client Officer

Alexander Jansen

Global Head of Sales

Mohamed Yangui

Head of Product Structuring

Caroline Jacquard

Marketing and Communication

Gary Rebibo

Co-founder and Chief

Marketing Officer

Ryan Shea

Crypto economist

Peter Stamas

Head of US Operations and Business Development

Yann Le Floch

Digital Money Banker

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Meet the senior tech team

João Pedro Vieira

Senior Developer

Gonen Eren

Senior Developer

Emanuel Gaspar

Senior Developer

Tiago Pereira

Senior Developer

Matthieu Le Berre

Co-founder, CTO

Pavel Khalimov

Senior Developer

Pedro Silva

Senior Engineer in Test

Viktor Klymenko

Senior Developer

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Meet Trakx advisors

Token Sale

Trakx Strategic Committee

Didier Seillier

Dir. of Dauphine Incubator

Laurent Seyer

Ex-COO MSCI

ex-CEO Lyxor

Mathieu Amzallag

M&A @ FinancièreCambon

Christophe Coutteau

Private Wealth manager

Christophe Barraud

Chief economist @MarketSecurities

Gabriel Rebibo

Co-founder @Atka

Jean-Marc Bonnefous

Partner CEO @ Tellurian

Ex BNP Trading

Daniel Arroche

Lawyer @ d&a Partners

Didier Varlet

CEO Cartesia

founder Carr Futures

Stephane Daniel

Lawyer @ d&a Partners

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Our ecosystem of partners

Accelerator and investors

Secured Custody

KYC / AML

Index Franchises

Crypto Market Data

Fiat On-Ramp

Trakx acts in an advisory capacity as an expert on the ongoing evolution of certain themes underlying certain of MSCI’s indexes

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2023

2022

2021

Trakx timeline

2020

2019

  • Creation of Trakx SAS, incorporated in France
  • Incubated at Dauphine University
  • Seeded and accelerated by ConsenSys

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  • Funding from BPI France and reputable Business Angels
  • Constitution of the strategic committee
  • Launch the first beta products on trakx.io, then a trading platform dedicated to professional traders

  • Granted VASP registration with the French Regulator (AMF)
  • Launch the official web version of the platform
  • Daily publication of Trakx CTI prices on Lumrisk
  • Equity fund raising round
  • Strengthened the core team

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  • Daily publication of Trakx CTI prices on Bloomberg
  • Partnership with MSCI
  • Partnership with Green Crypto Research
  • Partnership with Vinter, independent index calculator
  • Multichannel approach, partnership with top broker dealers
  • Launch our bespoke solution offering
  • Two rounds of private token sale
  • Team grew to 20+ total, including 5 new Senior Developers
  • First certificate issued with Gentwo on Top Blockchains Index

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  • Launch our new branding
  • Implementation of the retail marketing plan
  • Enabling retail investors to access Trakx CTIs
  • Dedicated risk profile strategies
  • Launched staked products
  • New digital distribution channels

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Trakx timeline

  • Launch more sophisticated products (Trakx BTC Momentum, Trakx USDc Earn, Yield & Staking CTIs)
  • Push on bespoke solutions (dedicated CTI, certificate…)
  • Develop tech-as-a service / white-labelling offering
  • Allow listing some products only to selected user groups
  • Further improvement of the UI/UX
  • Build a responsive mobile app
  • Add some gamification principles in the Exchange to enhance user engagement and retention through interactive features
  • Fine tuning of the data mining and trading bots
  • Offer DCA strategy (small regular investments) functionality
  • Add new chains for deposits/withdrawals
  • Prepare the transition to MiCA

  • Dashboard for IFAs and Influencers
  • Preparation of the transition to MiCA
  • Introduce the capability for customers to stake Proof-of-Stake (POS) assets
  • Create a notification center on the WebApp to keep users informed about relevant updates and events
  • Add translations to the website and app
  • Obtain SOC2 Type 2 Certification, industry-standard certifications to ensure compliance with security and data protection protocols
  • Expand geographic footprint outside Europe
  • Allow redemption in kind
  • Use ZK Proofs for Proof of Fundings to enhance privacy and security
  • Develop a conversational user interface (UI) to streamline user interactions and enhance user experience
  • On Ramp solution - Implement an on-ramp solution to simplify the process of converting fiat currency to cryptocurrency, facilitating user onboarding and adoption
  • Develop a non-custodial wallet solution to provide users with enhanced control over their digital assets

2024

2025+

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This presentation has been prepared by Trakx and its affiliates (collectively “Trakx” or the “Company”). The information contained in this presentation is subject to changes and/or updates without notice and at the Company’s sole discretion, and should not be construed as a commitment, promise or guarantee relating to the future performance or value of the Company. The information contained herein has been obtained from sources believed to be reliable but Trakx does not represent or warrant that it is accurate and complete. This presentation is provided to you for information purposes only and does not constitute an offer or solicitation to sell and/or acquire crypto assets, shares or securities. It does not constitute or form part of and should not be construed as any offer for sale or subscription of or any invitation to buy or subscribe for any securities not should it or any part of it form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any offer to sell or solicitation of an offer to buy financial instruments may be made solely through definitive offering documents, identified as such, in compliance with the terms of all applicable securities and other laws. Such definitive offering documents, if any, will describe risks related to an investment and will qualify in their entirety the information set forth in this presentation.

Trakx and/or an affiliate, a legal representative, an officer or an employee, together expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from reliance on any information contained in this presentation, any error, omission or inaccuracy in such document or any action resulting therefrom. This document does not constitute a recommendation to buy or financial advice. It is strictly informational. Do not trade or invest in any tokens, crypto assets, companies or entities based upon this document. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of your investment. Investors should conduct independent due diligence, with assistance from professional financial, legal and tax experts, on topics discussed in this document and develop a standalone judgment of the relevant markets prior to making any investment decision.

Copyright in this report is owned by Trakx (© Trakx, 2023) - no part of this report may be reproduced in any manner without the prior written permission of Trakx.

TRAKX is a French société par actions simplifiée having its registered office at 10 rue penthièvre, 75008 Paris, registered with the Paris Trade and Companies Register under number 850 626 078, and represented by Allco Ltd, a company based in Malta and registered under number C90184, acting as Chief Executive Officer (Président). TRAKX is a digital asset service provider registered with the Autorité des Marchés Financiers under number E2021-020, providing TRAKX services to registered users. TRAKX contact email address: support@trakx.io

ANY INVESTMENT IN DIGITAL ASSETS IS AN INHERENTLY RISKY INVESTMENT. IF YOU ARE IN ANY DOUBT ABOUT INVESTING, THE COMPANY RECOMMENDS YOU CONSULT WITH YOUR FINANCIAL ADVISOR.

Disclaimers

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