Coinsilium Group Limited: Coinsilium and Otomato Protocol Announce Strategic Collaboration to Optimise Digital Asset Trading Strategies

COINSILIUM GROUP LIMITED 

("Coinsilium" or the "Company")

Coinsilium Group Limited: Coinsilium and Otomato Protocol Announce Strategic Collaboration to Optimise Digital Asset Trading Strategies

London, UK, 2 January 2025 - Coinsilium Group Limited (AQUIS: COIN) (OTCQB: CINGF), the Web3 investor, advisor, and venture builder is pleased to announce that it has entered into a strategic collaboration agreement (“the Collaboration”) with investment portfolio company Otomato Inc (“Otomato”), a pioneering Web3 technology platform specialising in autonomous agent-based solutions. The Collaboration aims to leverage Otomato’s cutting edge technologies to maximise the return potential of Coinsilium's existing and future digital asset treasury holdings.

This Collaboration comes at a pivotal time as market conditions continue to improve, positioning Coinsilium to capitalise on the favorable crypto environment. With the integration of Otomato’s advanced automated strategies, the deployment of this initiative couldn’t come at a more opportune time, aligning perfectly with market dynamics and ensuring that the Company is well-positioned to maximise value creation as market momentum starts to build.

Background

On 3 July 2024, Coinsilium announced its investment in Otomato through a Simple Agreement for Future Tokens ("SAFT") as part of Otomato’s 'Early Backers' round. The SAFT provides Coinsilium with an option to acquire additional future tokens under the 'Strategic' token allocation pricing and vesting terms. Additionally, Coinsilium is entitled to receive 7.5% of all revenues generated by the Otomato.xyz platform until the Token Listing Event (“TGE”). The full announcement is available here:

https://www.aquis.eu/stock-exchange/announcements/4689074

The Collaboration

The Otomato Collaboration will run for an initial term of twelve months and will leverage Otomato’s cutting edge Web3 technologies to design, implement, and refine trading strategies aimed at maximising the return potential of Coinsilium's existing and future digital asset treasury holdings. In this context, we anticipate significant growth and increased activity over the course of the year ahead, driven by the expanding scale of the Company’s strategic advisory services division and set against the backdrop of an increasingly favorable crypto market climate.

This strategic Collaboration highlights a proactive and disciplined approach to optimising Coinsilium’s digital asset treasury holdings through relatively low-risk, high-yield automated trading strategies. Rather than passively holding digital assets and waiting for trading opportunities to materialise, Coinsilium will leverage Otomato’s advanced technology to actively deploy its holdings. This approach aims to maximise returns by ensuring the Company’s digital assets are working harder to grow the value of the Company’s treasury and generate sustainable returns.

Coinsilium expects to benefit from two key streams of digital asset inflows over the course of 2025:

1. Liquidity Events from Investments: These occur at Token Generating Events ("TGEs"), which mark critical points where Coinsilium can realise value from its early stage investments. TGEs provide opportunities to unlock liquidity from the Company’s digital asset portfolio, which can represent significant returns on investments.
2. Success Fees from Advisory Services: Coinsilium also expects to receive token-based success fees for its strategic advisory services, contributing to its revenue-generating activities.

By leveraging relatively low-risk, high-yield strategies, this approach ensures that Coinsilium’s digital assets are effectively utilised to unlock their full potential, while aligning with the Company’s broader objectives for sustainable growth and value creation.

As per the Agreement, the Collaboration will focus on three primary areas:

• Trading Strategy Design: co-developing innovative digital asset trading strategies.
• Testing and Implementation: conducting rigorous testing and deploying these strategies on the Otomato Protocol.
• Performance Analysis: evaluating strategy performance to refine and enhance their effectiveness.

Examples of Crypto Asset Trading Strategies

Potential trading strategies for digital assets on decentralised finance (DeFi) platforms on EVM-compatible chains such as Base, Ethereum, or Arbitrum include:

• Yield Arbitrage: A trading strategy that takes advantage of differences in yield rates across multiple decentralised finance (DeFi) platforms. For stablecoins such as USDT, USDC, or USDS, this involves reallocating assets between DeFi platforms to secure the highest possible returns. With the integration of the Otomato Protocol, this process becomes fully automated, enhancing efficiency and profitability while significantly reducing the need for manual intervention.
• Delta-Neutral Strategies: These involve balancing positions to offset opposing market movements, effectively minimising exposure to market volatility. By maintaining this equilibrium, these strategies allow for low-risk yield generation that is less dependent on market trends and fluctuations. Such strategies, which would typically require active management to sustain balance and optimise returns, can be seamlessly automated with the Otomato Protocol.
• Stablecoin Perpetual Swaps: Utilising stablecoins as collateral to trade perpetual swaps on decentralised platforms. These strategies enable fee generation through simultaneous long and short positions (market-making) and support the hedging of other DeFi positions.

Eddy Travia, Chief Executive Officer of Coinsilium commented: “We are delighted to announce this strategic Collaboration Agreement with Otomato, which represents a natural progression of our strong commercial relationship. By integrating the Otomato Protocol into our digital asset management strategy, Coinsilium stands to gain substantial benefits, particularly in enhancing the growth of our digital asset treasury. This integration leverages Otomato’s cutting-edge automated strategies and AI-driven agents, which have demonstrated revolutionary success in DeFi by unlocking high-yield opportunities with precision and efficiency.

Otomato’s agent-based platform simplifies the complexities of DeFi trading strategies, enabling users to optimise returns with minimal manual intervention. For Coinsilium, this means our digital assets are not only preserved but actively deployed to achieve their full potential. While this collaboration offers significant commercial benefits for both Coinsilium and Otomato, it also underscores our shared commitment to advancing the Web3 ecosystem through strategic partnerships and innovative solutions.”

Dylan Breugne, Co-Founder of Otomato commented: “We are grateful and excited to partner with Coinsilium in this strategic collaboration. This partnership is perfectly timed with the upcoming launch of the Otomato Protocol in early 2025, showcasing the power of our autonomous agents to significantly enhance and streamline digital asset management operations effectively.

Together, we aim to create innovative use cases that will strengthen our go-to-market strategy and drive value across the Web3 space.”

Further information on Otomato is available in our Web3 report, available for download from the Coinsilium Website here: https://coinsilium.com/investors/web3-reports

The Directors of Coinsilium Group Limited take responsibility for this announcement.

 

Coinsilium Group Limited Malcolm Palle, Executive Chairman Eddy Travia, Chief Executive	+350 2000 8223 +44 (0) 7785 381 089 www.coinsilium.com
Peterhouse Capital Limited (AQUIS Growth Market Corporate Adviser and Corporate Broker)	+44 (0) 207 469 0930
SI Capital Limited (Joint Broker) Nick Emerson	+44 (0) 1483 413 500
Oberon Capital (Joint Broker) Nick Lovering, Adam Pollock	+44 203 179 5300

 

Notes to Editors 

About Coinsilium  

Coinsilium is an investor, advisor and venture builder at the forefront of Web3 convergence. The Company invests in and accelerates Web3 and AI powered technology start-ups whilst supporting their development and commercialisation.

Coinsilium also provides strategic advisory services to start-ups looking to issue tokens through token generation events. Coinsilium’s wholly owned subsidiary Coinsilium (Gibraltar) Limited is the Company’s operational hub in Gibraltar. 

In 2015, Coinsilium became the first blockchain company to IPO. Coinsilium shares are traded on the Aquis Growth Market in London, under the ticker symbol "COIN", and on the OTCQB Venture Market in the United States under the ticker symbol "CINGF".

https://coinsilium.com/

About Otomato Protocol

Otomato is a Web3 protocol that empowers users to create autonomous agents for managing both on-chain and off-chain tasks without requiring coding expertise. By actively monitoring events, Otomato enables users to execute various actions, including digital asset swaps, lending and borrowing as well as notifications, and workflow integrations. 

https://www.otomato.xyz/