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First crypto index in Hong Kong

Index Review 2021 Q1

1 Market Overview

2 Historical Crypto Market Capitalization (free-floated) & Price (Dec 2018 - Mar 2021)

2021 Q1

Market Cap Bitcoin Price

The total Market Cap and Bitcoin price kept the upward trend during this quarter.

Source: CoinMarketCap as of 31/03/2021 HKT

3 Crypto market overview Top 10 Cryptos

No Name Market Cap Price % Change* 2021 Q1 1 Bitcoin $1,099,939,890,804 $58,917.69 104.28% 2 $212,788,788,571 $1,846.03 145.61% 9,000 + Crypto Currencies 3 Coin $48,125,603,373 $311.43 716.54% 4 $40,681,086,817 $1.00 0.00% 131 Billion USD Daily Volume 5 Cardano $38,763,410,938 $1.21 557.47% 6 Polkadot $31,495,837,002 $34.07 369.93% 7 XRP $25,737,663,165 $0.57 167.62%

1.88 Trillion USD Market Cap 8 $14,871,243,021 $28.49 588.16%

9 $13,129,004,499 $196.68 51.91% 10 THETA $12,977,378,293 $12.98 711.25%

Source: CoinMarketCap as of 31/03/2021 HKT

• % Change since the end of last quarter 4 Crypto market overview

2020 Q4 2020 Q3

9,000 + Crypto Currencies (+11.1%) 8,100 + Crypto Currencies

131 Billion USD Daily Volume (-29.1%) 185 Billion USD Daily Volume

1.88 Trillion USD Market Cap (+147%) 762 Billion USD Market Cap

Compared with last review, total market cap rose by 147%, while the daily volume cooled down by 29.1%.

Source: CoinMarketCap as of 31/03/2021 HKT

5 Crypto Highlights

Tesla customers can now buy their car with Bitcoin, company chief Elon Musk has said. Mr. Musk, a well- Tesla Cars Can Be known Bitcoin enthusiast, made the unexpected announcement in a tweet. Mr. Musk tweeted Tesla would be running its own internal software to handle Bitcoin payments, which "operates Bitcoin nodes directly". And in Bought in Bitcoin an apparent bid to assuage fears of Bitcoin enthusiasts who want to see the ecosystem thrive, Mr. Musk said: "Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency"

Dogecoin (DOGE) is based on the popular "doge" Internet meme and features a Shiba Inu on its logo. The open-source was created by Billy Markus from Portland, Oregon and Jackson Palmer from Sydney, Australia, and was forked from Litecoin in December 2013. 's creators envisaged it as a fun, Dogecoin light-hearted that would have greater appeal beyond the core Bitcoin audience, since it was based on a dog meme. It quickly developed its own online community after introduction, and Tesla CEO Mr. Musk posted several tweets on social media that Dogecoin is his favorite coin.

Filecoin (⨎) is an open-source, public cryptocurrency and digital payment system intended to be a - based cooperative digital storage and data retrieval method. It is made by Protocol Labs and builds on top of InterPlanetary File System, allowing users to rent unused hard drive space. A blockchain mechanism is used to register the deals. It is a decentralized storage system that aims to “store humanity’s most important information.” Filecoin is open protocol and backed by a blockchain that records commitments made by the network’s participants, with transactions made using FIL, the blockchain’s native currency. The blockchain is based on both proof-of-replication and proof-of-spacetime.

Theta (THETA) is a blockchain powered network purpose-built for video streaming. Launched in March 2019, THETA the Theta mainnet operates as a decentralized network in which users share bandwidth and computing resources on a peer-to-peer (P2P) basis.The project is advised by Steve Chen, co-founder of YouTube and Justin Kan, co-founder of Twitch.

Source: Tesla Cars Can Be Bought in Bitcoin: https://www.bbc.com/news/technology-56508568 Dogecoin: https://dogecoin.com/ Filecoin: https://filecoin.io/ THETA: https://www.thetatoken.org/ Top 10 Cryptos Exchanges by CoinMarketCap

Rank Name Exchange Score Volume (24h) No. Markets No. Coins 1 Binance 9.8 $27,254,028,007 1151 346 2 Pro 8.8 $2,628,206,069 156 53 3 8.5 $1,208,460,167 284 62 4 Global 8.4 $7,699,878,755 937 315 5 8.3 $917,376,095 299 130 6 KuCoin 8.2 $874,895,554 674 295 7 8.2 $2,026,748,131 191 160 8 Coinone NEW 7.9 $808,581,363 169 168 9 7.9 $494,793,717 53 18 10 Binance.US NEW 7.8 $388,001,266 109 54

Source: CoinMarketCap as of 31/03/2021 HKT

Top 10 exchanges accounted for 33% of the total market trading volume, 230% higher than last quarter (10%).

• For the CoinMarketCap Exchanges Ranking, please refer to: • https://support.coinmarketcap.com/hc/en-us/articles/360052030111-Exchange-Ranking 7 Top 10 Crypto Exchanges comparison with last quarter

Ranking This Review (2021 Q1) Last Review (2020 Q4) 1 Binance Binance 2 Coinbase Pro Coinbase Pro 3 Kraken Kraken 4 Huobi Global Huobi Global 5 Bitfinex Bithumb 6 KuCoin Bitfinex 7 Bithumb Bitstamp 8 Coinone NEW FTX 9 Bitstamp KuCoin 10 Binance.US NEW bitFlyer

The top 4 exchanges haven’t changed, with Coinone and Binance.US merged into top 10.

8 Some world popular Crypto Indexes Company Num. of Origin Index Name Dissemination Data Source Current Status Name Constituents

CoinMarketCap / Daily / Hourly / Per IX Asia HK ixCrypto Index 8 ixAsia Data Currently Running 15 seconds Services

Daily / Per 1 Bloomberg Crypto Bloomberg US BGCI 6(<=12) Currently Running second Price Fixings (CFIX)

Huobi China HUOBI 10 INDEX 10 Per 15 seconds Huobi Exchange Currently Running CS&P US CCI30 30 Per 10 seconds CoinMarketCap Currently Running BITX 10 BIT20 20 Bitwise US Daily Unknown Currently Running BIT70 70 BIT100 100 Cryptoindex US CIX100 100 Per 1 second Unknown Currently Running CRypto IndeX Germany CRIX 11 Daily CoinGecko Currently Running Hashdex Brazil HDAI 18 Per 5 Minutes Unknown Currently Running

9 Top 10 Market Capitalization Cryptos (Comparison)

Ranking By AMC Ranking By AMC Name (2021 Q1) (2020 Q4) Bitcoin 1 1

Ethereum 2 2

Cardano 3 8

Binance Coin 4 6

Polkadot 5 7

XRP 6 3

Litecoin 7 5 8 4

Stellar NEW 9 11

Dogecoin NEW 10 -

Source: CoinMarketCap as of 31/03/2021 HKT

*Average market capitalization in 90 days preceding the review date 31st March 2021 **Cryptos shaded in grey are cryptos within top 10 by MC but not in the IXCI constituent list. 10 Top 10 Trading Volume Cryptos (Comparison)

Ranking By ATV Ranking By ATV Name (2021 Q1) (2020 Q4) Bitcoin 1 1

Ethereum 2 2

Litecoin 3 4

XRP 4 3

Cardano 5 9

Bitcoin Cash 6 5

EOS 7 6

Polkadot NEW 8 12

Binance Coin NEW 9 17

Dogecoin NEW 10 -

Source: CoinMarketCap as of 31/03/2021 HKT

*Average transaction value in 90 days preceding the review date 31st March 2021 **Cryptos shaded in grey are cryptos within top 10 by ATV but not in the IXCI constituent list. 11 ixCrypto Index 2021 Q1 Review Result

12 Result of the index review

According to the Constituents Enhancement Rule, during this quarter, EOS and Bitcoin SV both fell out from the top 8 coins, which triggered with a constituent change.

Number of Average MC Average Daily Constituent Changes Constituents Coverage Volume Coverage Deletions: EOS Old Constituents 8 & Bitcoi 80.9% 82.3% n SV Additions: Polkdot New Constituents 8 82.4% 82.5% & Stellar

The new constituents will be Bitcoin, Ethereum, Cardano, Polkadot, XRP, Litecoin, Bitcoin Cash, and Stellar.

*The MC and volume above is based on the 90-day-average-free-float adjusted market capitalization and volume preceding the review date 31st March 2021 13 ixCrypto Index Constituents

Weighting (%) Before 40% Cap Cum. MC After 40/30/20 No. Crypto 90-Day-Avg-Market Cap (MC) Cap Weight Weighting Coverage Step Cap

1 Bitcoin $838,309,774,954 76.33% 40.00% 40.00% 62.30% 2 Ethereum $175,311,044,387 14.77% 37.44% 30.00% 75.33% 3 Cardano $24,234,441,746 2.69% 6.82% 9.07% 77.13% 4 Polkadot $23,049,077,289 2.19% 5.54% 7.37% 78.84% 5 XRP $18,941,033,930 1.79% 4.53% 6.02% 80.25% 6 Litecoin $11,589,256,660 0.91% 2.31% 3.07% 81.11% 7 Bitcoin-cash $9,460,155,468 0.68% 1.74% 2.31% 81.82% 8 Stellar $8,108,830,112 0.64% 1.62% 2.16% 82.42% The constituents have changed with Polkadot and Stellar in. The number of constituents stays at 8 with 82.4% MC coverage.

14 Top Cryptos Trading Volume

Top 30 Cumulative Volume % 120%

100% Top 25: 97.82% 80%

60%

40%

20%

0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Number of cryptos by volume ranking 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1

Source: CoinMarketCap as of 31/03/2021 HKT

15 Performance IXCI VS Bitcoin Index 16000 IXCI Bitcoin Index 2020 Q4 2021 Q1 14000 Inception date: 03/12/2018 (HKT) 12000 Inception index level: 1000 10000

8000

6000

4000

Inception 2000

0 2017-08 2017-11 2018-02 2018-05 2018-08 2018-11 2019-02 2019-05 2019-08 2019-11 2020-02 2020-05 2020-08 2020-11 2021-02 Back Testing Period

Index %Change Standard Deviation Index Index Level 1 - Mth 3 - Mth 6 - Mth 1 - Yr YTD 1 - Mth 3 - Mth 6 - Mth 1 - Yr YTD IXCI 10008.91 21.87% 133.58% 398.73% 828.74% 133.58% IXCI 539.50 1699.73 2777.70 2682.01 1699.73

16 IXCI performance since inception

IXCI 12000

10000

8000

6000

4000

2000

0 12/2018 03/2019 06/2019 09/2019 12/2019 03/2020 06/2020 09/2020 12/2020 03/2021

IXCI keeps a bullish upward trend in the first quarter of 2021 and hit a record high.

Period: 03/12/2018 – 31/03/2021 HKT

17 Introduction of ixCrypto Index's methodology

18 Introduction

The ixCrypto Index (“IXCI”) serves as a market benchmark that reflects the overall performance of the largest and most liquid listed in the world.

The base date of IXCI was 3 December 2018 at 1,000 base level, and it was launched on 12 December 2018.

The IXCI is a free float-adjusted market capitalisation weighted index with a 40% cap on the weighting of individual constituent cryptocurrency. It was first calculated and disseminated daily, then the hourly index was launched on 1 June 2020, and the real time index was launched on 19 November 2020 through Nasdaq GIDS at a 15 second interval.

19 Constituents Eligibility

Universe

1 It must fit the definition of a "cryptocurrency" as per the Wikipedia definition.*

2 The cryptocurrency must be traded publicly, and actively traded on at least two (2) exchanges

* A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. https://en.wikipedia.org/wiki/Cryptocurrency 20 Selection Criteria

The cryptocurrency should be among the top N free-floating adjusted market capitalization (“adjusted MC”) cryptocurrencies, where the N cryptos’ market coverage should just exceed 80%. 1

The cryptocurrency should rank in top 25 in terms of 90-day average trading volume. 2

If the cryptocurrency in top N in terms of adjusted MC cannot meet the liquidity requirement, it will be kicked out and replaced by the next one or more eligible cryptocurrencies until the total coverage 3 exceed 80%.

21 Conflict of Interest Rule*

To keep the index neutral and fair, the constituents of the ixCrypto Index will exclude the coins managed/ operated by any organizations that would have conflict of interest with the index. These organizations may include crypto exchanges, crypto funds, etc.

*The Conflict of Interest Rule was effective on 2nd October 2020. For more details of this rule please refer to ixCrypto Index Methodology Paper Section 3.9. 22 Index Review

1 Quarterly Review

2 Buffer Rule

3 Fast Entry Rule

4 Constituents Enhancement Rule

23 Quarterly Review & Announcement schedule

Review Ix Fintech undertakes regular quarterly reviews of IXCI constituents Schedule with data cut-off dates of end of March, June, September and December each year.

Announcement dates of constituent changes will be the second Friday after the cut-off dates of March, June, September and December.

Effective dates of constituent changes will be the third Friday after the cut-off dates of March, June, September and December.

24 Buffer rule

In order to avoid frequent change of constituents, set a 5% buffer zone for market capitalization. It means that, in term of adjusted MC, only when the sum of constituents’ weights is below 75%, it need reconstitution.

25 Constituent Enhancement Rule

When running the index, we found that the constituents are enough cover the top 80% market capitalization even some of the constituents have ranked lower in market capitalization, thus we decided to employ an 1 enhancement change on the reconstitution rule.

Before the enhancement change, if the old constituents after the quarterly index review still cover 75% free float adjusted market 2 capitalization, there would not be reconstitution.

After the enhancement, if there are more than one cryptocurrency which shall be selected as the new constituents, a reconstitution will now be conducted to include the new constituents with bigger market 3 capitalisation and meet the liquidity screening.

*The enhancement was implemented on 6th January 2020 (Monday). 26 Constituent Enhancement Rule - Example

Rank Rank Rank No Name (2019Q4) (2020Q1) (2020Q2)

1 Bitcoin 1 1 1

2 Ethereum 2 2 2

3 XRP 3 3 3 After the enhancement, there are 4 Bitcoin Cash 4 4 4 2 constituents falling out of top in market cap, then a reconstitution 5 Litecoin 5 6 6 would be employed to add the 6 EOS 6 7 8 new rank 6 and 7 as constituents.

7 Stellar 9 11 11

The last 2 constituents is nearly out of top 7 in average market cap during the previous reviews.

*The enhancement was implemented on 6th January 2020 (Monday). 27 Fast entry rule

A new crypto will be added if it meets the below requirements for 5 consecutive days:

1 Daily trading value ranks top 2.

2 MC is more than 30% weighting of the total market MC.

*MC = Market Capitalization 28 Capping Rule

All constituents are initially weighted by their adjusted MC based. With the introduction of the Step Capping Rule, which implies changing from the current 40% capping rule on single constituents to a step cap of 40%/30%/20% in extreme scenarios, only the largest weight constituent weighted by market capitalization can represent 40% of the index weight and the second largest constituent can only represent 30% and the remaining constituents with 20% maximum weight.

40/30/20 Step Cap Crypto Initial Weights 40% Cap Adjusted 50% Cap Adjusted Adjusted Bitcoin 76.33% 40.00% 40.00% 50.00% Ethereum 14.77% 37.44% 30.00% 31.20% Cardano 2.69% 6.82% 9.07% 5.68% Polkadot 2.19% 5.54% 7.37% 4.62% XRP 1.79% 4.53% 6.02% 3.77% Litecoin 0.91% 2.31% 3.07% 1.93% Bitcoin-cash 0.68% 1.74% 2.31% 1.45% Stellar 0.64% 1.62% 2.16% 1.35% Source: CoinMarketCap as of 31/03/2021 HKT

29 Index Distribution

• Daily Index will be published at 12:00 noon HKT every working day.

• Hourly Index will be available from 9am-9pm and updated at every :00 of the hour.

• Real-Time Index will be available from 9am-9pm and updated at every 15 seconds interval.

• Dissemination methods:

ixOption 期權王 https://ix-index.com/ ixOption GIDS “IXCI”

30 Appendix 1 Data source comparison

Data source* CryptoCompare CoinMarketCap

Provides all Strength Provides every 3 hours data for latest 24h Open/High/Low/Close/Volume/Market Cap daily data from one crypto’s inception day

Only provides price data Weakness Doesn’t provide minute-level data Historical data is discontinuous

Data difference The difference between 3 cryptos (BTC, ETH, LTC) within 1 month is 1.70% on average

Source: CoinMarketCap and CryptoCompare as of 31/03/2021 HKT

* All above refer to public data 31 Top 10 Cryptocurrencies Appendix 2

2021 Q1 2020 Q4

No Name Market Cap Price Vol (24h.) No Name Market Cap Price Vol (24h.)

1 Bitcoin $1,099,939,890,804 $58,917.69 $54,414,116,432 1 Bitcoin $536,033,807,161 $28,840.95 $51,287,442,704

2 Ethereum $212,788,788,571 $1,846.03 $22,512,781,703 2 Ethereum $85,722,581,849 $751.62 $17,294,574,210

3 Binance Coin $48,125,603,373 $311.43 $4,039,620,710 3 Tether $20,893,813,528 $1.00 $72,666,964,921

4 Tether $40,681,086,817 $1.00 $82,702,790,409 4 XRP $9,617,853,652 $0.21 $8,894,036,560

5 Cardano $38,763,410,938 $1.21 $2,517,422,843 5 Litecoin $8,571,310,124 $129.47 $8,127,317,345

6 Polkadot $31,495,837,002 $34.07 $1,281,200,871 6 Bitcoin Cash $6,674,138,320 $358.81 $4,985,121,425

7 XRP $25,737,663,165 $0.57 $3,831,603,058 7 Polkadot $6,492,175,417 $7.25 $2,059,017,629

8 Uniswap $14,871,243,021 $28.49 $504,391,381 8 Cardano $5,725,936,828 $0.18 $1,849,432,295

9 Litecoin $13,129,004,499 $196.68 $3,604,665,752 9 Binance Coin $5,507,131,905 $38.14 $501,223,201

10 THETA $12,977,378,293 $12.98 $438,055,767 10 Chainlink $4,484,657,373 $11.25 $1,497,541,828

Source: CoinMarketCap as of 31/03/2021 HKT

32 Appendix 3 Top 10 Cryptocurrencies (Price Comparison)

No Name Price (2021 Q1) Price (2020 Q4) % Change 1 Bitcoin $58,917.69 $28,840.95 104.28% 2 Ethereum $1,846.03 $751.62 145.61% 3 Binance Coin $311.43 $38.14 716.54% 4 Tether $1.00 $1.00 0.00% 5 Cardano $1.21 $0.18 557.47% 6 Polkadot $34.07 $7.25 369.93% 7 XRP $0.57 $0.21 167.62%

8 Uniswap $28.49 $4.14 588.16%

9 Litecoin $196.68 $129.47 51.91%

10 THETA $12.98 $1.60 711.25%

Source: CoinMarketCap as of 31/03/2021 HKT

33 Thank you

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