In this newsletter, we invite you to learn more about honesto’s latest developments and plans.
Your honesto Team
Text by: Ethan Schaerer
and Steve Müller.
Overall market situation
In recent months, several high-profile collapses have
occurred, including FTX, Genesis, and others. These
events have certainly had a negative effect on the
market. However, it is important to note that despite
ongoing volatility, BTC has generated a 95% compound
annual return over the past 10 years, outperforming
every other asset class by a factor of 7.
This chart below shows annual returns for selected
asset classes ranked from best to worst within each calendar year since 2014.
Despite the challenging market environment, which included the crypto winter and incidents of fraud,
we experienced healthy growth in trading volume during Q1-Q3 of 2022.
In Q4, trading volume declined by 11% compared to Q3. To put this into perspective, Coinbase
and other providers reported a much larger decline in trading volume of 89% in Q4 compared to
the previous quarter. Although we fell short of our 2022 user number target in absolute terms, it’s
important to consider the challenging market conditions we faced during last year’s bear market when
cryptocurrencies underwent significant corrections, ranging between minus 60% to 90%. In response
to this reality, we made the decision to prioritize efficiency and focus on enhancing honesto’s product
and service offering and scaling the infrastructure.
We are confident about the market opportunities and remain committed to achieving our ambitious
5-year business goals. However, we recognize that our future strategic planning process must take
into account the overall market sentiment that allow for some degree of deviation to both the up
and down sides. By incorporating these considerations into our planning, we will be better equipped
to navigate changing market conditions and adjust accordingly, while still working towards our
We continue to attract clients to our app with a higher-than-average number of trades and ticket
size per trade. On average, our traders make between 8-12 trades per year, which is higher than the
market average of about 6 trades per year. This leads us to believe that the honesto app remains
among the most trustworthy crypto providers in the market. In Q1 2023, we are pleased to report
that the market has recovered since the low in December in 2022, and we have seen a healthy
recovery and expect to attain an increase of 60 % in trading volume compared to Q4 2022.
We have also seen a strong increase in individual client activity, which has now risen to 70%
in Q1 2023 compared to Q4 2022.
Customers activity means the total number of all traders triggering trades in a given period.
On the one hand, this can be attributed to the volatility of cryptocurrencies due to the
turbulence of the last few months. On the other hand, this means for us that clients trust our
app and are becoming increasingly active in the events of the crypto market via the honesto