honesto AG Quarterly Investor Report


Dear investor,

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.

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.

Business Performance

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

long-term goals.

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