Diginex CEO Letter

Dear Stakeholder:

On behalf of the Diginex Management Team, I am writing to share recent operating highlights and record trading updates.

The overall business is robust, performing well, and seeing record performance levels over recent days. We are also aware of certain allegations circulating in the market. The Diginex Management Team and I wanted to set the record straight and share this recent performance data and market commentary.

We have also issued a Media Statement yesterday, 24 May 2021, which is available on the Diginex website and can also be seen here.

Record Recent Performance

  • Record US$200 Million EQUOS Daily Trading Volume (May 20, 2021)
  • Close to 30-Day US$3 Billion Trading Volume
  • 50% Increase in EQO Token Value Since April 2021 Launch

We are pleased to report record trading volumes over the past 30 days: an increase of more than 40% to US$2.9 billion over the three-week period since the company announced a record US$2 billion in 30-day volumes on May 4, 2021.

“Impressive EQUOS Volume Growth” – GSR Partner

Jakob Palmstierna, Partner at GSR (www.gsr.io), a global leader in digital asset market-making, said: “The volume growth on EQUOS has been very impressive. As the major liquidity provider on the EQUOS exchange we can see that trading activity is genuine and volumes are real. EQUOS has scaled at speed and this is testament to the strong financial engineering capabilities of the management team and the successful design of their EQO utility token. We are looking forward to working closely with Diginex as a valued partner over the long term.”

Nasdaq-listed, Transparency Driven

As an institutional-grade, regulatory-focused exchange, EQUOS is committed to delivering transparency to the crypto industry. Diginex’s financial reports are audited as part of our obligations as a Nasdaq-listed company in the United States. EQUOS does not allow internal market-making and has rigorous checks and balances in place to identify and remove self-matching trades and wash trading. These are key points of differentiation from a significant number of exchanges currently in operation.

“Diginex Sets Much-Needed Standard in Crypto Sector” – Parallel Capital CEO

Timothy Tam, CEO of Parallel (www.parallelcapital.co), one of the fastest-growing crypto liquidity providers, said: “Diginex is a proven industry leader and one of our most important partners. We are delighted to be part of the ongoing Diginex growth story as a significant liquidity provider on EQUOS. Being Nasdaq-listed, Diginex sets a much-needed standard in the sector with institutional-grade infrastructure and strong corporate governance. The launch of EQO has been critical in driving the large volume growth seen on the exchange in the past few weeks.

It is clear this speaks to the depth of the EQUOS management team and their ability to design products and services that have the confidence of institutional and retail investors. Parallel only partners with a select few in the industry who share our commitment towards upholding the highest industry standards and we are delighted with our partnership with Diginex.

Multi-Jurisdictional Regulation

Diginex operates in multiple jurisdictions, with oversight from several regulators in globally recognized financial centers, including Singapore, Switzerland, the United Kingdom, and the United States. Digivault, Diginex’s global custodian, was also the first standalone digital asset custodian to receive approval from the Financial Conduct Authority (FCA) of the United Kingdom to register as a custodian wallet provider under Money Laundering regulations.

Decades of Regulatory Management Experience

Diginex’s senior leadership brings decades of experience working as regulated individuals under the oversight of globally respected financial regulatory authorities. Our Chairman, Chi-Won Yoon was formerly President and CEO, Asia-Pacific and Vice-Chairman, Wealth Management at UBS (1997-2019). Speaking personally, before joining Diginex, I was Managing Director at Nomura (2000-2018). Combined, Chi-Won and I have more than 50 years of management experience in regulated financial and investment environments.

Commitment to Fairness and Transparency

EQUOS is one of the fastest, institutional-grade exchanges to reach these current trading volume levels. This is even more impressive given we do not have an internal market maker on the exchange and have robust procedures in place to ensure all volumes are composed of valid trades. Our commitment to offering a fair and transparent trading experience, together with our institutional-grade product and solutions, will continue to drive volumes higher over the long term.

EQO Resilient Amidst Market Turbulence

Our EQO exchange utility token is significantly contributing to increases in both volumes and customer acquisition. The token’s price as traded on EQUOS has proved resilient during recent periods of weak cryptocurrency prices. At present, Bitcoin is trading at US$38,000, down approximately 40% from April 2021. Over a similar period, EQO has outperformed, climbing from US$0.50 to US$0.75, a 50% increase since launch in early April 2021. This validates the unique structure of EQO, which was specifically designed to promote volumes on the exchange and reward customers for trading on the exchange and holding their tokens.

“Robust Levels of Oversight and Control” – Diginex Chairman

Quoting Mr. Chi-Won Yoon, the Chairman of Diginex, “This business update highlights the outcome of the work the team has been putting in since our listing in October 2020 with robust levels of oversight and control to support the business strategy.

We are executing our roadmap in alignment with the interests of shareholders, customers, employees, and regulators. Our Board, the majority of whom are independent directors, is committed to adhering to the highest standards of transparency and oversight.”

On behalf of the entire Diginex Management Team and everyone involved with our business, we wanted our investors to hear this latest operational update and market insights directly from our leadership team.

Our business is seeing record performance, our operations are transparent, our regulation is multi-jurisdictional and market confidence is strong.

If you have any questions about the Diginex business, please contact me directly at [email protected].

Thank you.

Best regards,

Richard Byworth

CEO, Diginex