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TORONTO, ONTARIO, October 26, 2021. ‐ Cypherpunk Holdings Inc. (CSE: HODL,
OTC: KHRIF) (“Cypherpunk” or, the “Company”),
a sector leader for cryptocurrency, privacy
and cryptography focused investments, wishes to congratulate Animoca Brands Corporation
Limited (“Animoca Brands”) on the recent closing of a US$65 million capital raise (the “Capital

Animoca Brands raised a total of US$65 million (approximately C$80 million) at a subscription
price of AUD$2.00 per share (approximately C$1.86 per share), issuing a total of 43,850,317 new
shares at a pre-money value of US$2.2 billion. More information on Animoca Brands’ capital raise
is available at https://bit.ly/3DUSaiu.

Cypherpunk owns 2 million Animoca Brands ordinary shares at a cost base of AUD$1.10 per share
(approximately C$1.02 per share).

“Cypherpunk congratulates Animoca Brands on completing its capital raise” Tony Guoga,
Cypherpunk’s CEO, stated. “We are excited by the prospect of significant/additional capital being
invested in Animoca Brands’ innovative non-fungible token and digital entertainment products
and we wish them continued success.”

Cautionary Note Regarding Forward-Looking Information

Officer/Director Contact

Daniel Cawrey | Chief Operating Officer

dan@cypherpunkholdings.com | Office: 1-647-946-1300

Investor Relations Contacts:

Veronika Oswald | Investor Relations

veronika@cypherpunkholdings.com | Office: 1-647-946-1300

With the creation of the internet came the invention of Internet Protocol (IP) addresses. These are more important to the digital world than most realize – it is what allows computers and other devices to communicate with each other on the internet. IP addresses act as identifiers similar to street addresses. They send information packets to a correct location, much like a parcel or piece of mail to a piece of real estate in the physical world.

Each device connected to internet or a network must have some of this digital real estate in the form of an IP address to be able to send and receive data. Because of the internet’s explosive growth the past few decades, there are now two variants: IPv4 (IP version 4) and IPv6 (IP version 6).

IPv4 is a format created in the 1980s. It looks like “” – a set of four numbers, each ranging from 0 to 255, which are separated by periods. In the beginning, all IPv4 addresses were allocated to different Internet Registries – for example, most world continents had one each of their own.

Internet Registries. Source: RIPE NCC

Starting with the Asia-Pacific region registry in 2011 and ending with European, Central Asian and Middle East region registry in 2019, all organizations responsible for the distribution of IPv4 addresses had exhausted their IPv4 address pools. With an already existing shortage of available addresses in the market, this has increased the price of IPv4 with strong momentum. Since 2015, the value of IPv4 addresses have increased four-fold.

IPv4 prices from 2014 to 2021. Source: IPv4.Global

Why the jump in price? IPv4 is limited in terms of address space, especially given the explosion of digital devices now being hooked up to the internet. The newer format, IPv6, looks like “2001:0db8:85a3:0000:0000:8a2e:0370:7334” and allows space for way more devices – smartphones, cars, fridges and yes, even toasters.

Everything requires an IP address in order to function online. However, due to its technical limitations in its address space, there are just shy of 4.3 billion IPv4s available. And there are already way more than 4.3 billion devices registered on the internet.

This is why IPv6 was created. It enables 340,282,366,920,938,463,463,374,607,431,768,211,456 or 340 trillion trillion trillion IP addresses in total. This should be more than enough address space for many future generations.

However, since the introduction of IPv6 in 1999 by ARIN, its adoption rate has barely reached 35% – much lower than experts predicted many years ago.

Why has the transition from IPv4 to IPv6 been so slow? It costs too much to implement. The Internet is built on millions of servers, routers and switches, digital plumbing that was designed only for IPv4. IPv6 requires a change in the internet’s physical infrastructure itself, which is cost prohibitive.

Because of this, most companies simply choose to purchase or lease IPv4 addresses. This minimizes expenditures and maintains compatibility for user accessibility to online services. This is cheaper than spending money on next-generation IPv6 hardware, especially in the developing world. Many tech companies, for example, now are focused on leasing or buying IPv4 addresses instead of spending lots of money on IPv6-compatible hardware infrastructure.

IPv6 adoption in terms of availability connectivity of Google users is around 35%. Source: Google

Given these current circumstances in the IP address industry, Cypherpunk Holding can capitalize on the significant increase in value of owning IPv4 address space. In addition, these addresses can then be leased out. Similar to bitcoin, the IPv4 market is driven in part by a shortage of supply with high demand. This will most likely lead to a significant increase in prices in both short- and long-term time frames and opportunities to generate yield from lease agreements.

Cypherpunk Holdings strongly believes in everyone’s right to privacy. The company thus has decided to lease the majority of its IP addresses to Virtual Private Network (VPN) services. Whether it is a public café, an airport or a company, VPNs help to secure an individual’s location, identity and data from hackers attempting access.

While IPv6 offers improved security measures, Cypherpunk sees IPv4 addresses remaining significant real estate in the digital realm for at least another decade. At least until IPv6 becomes the main IP address protocol, or other solutions emerge within the internet space, perhaps via improved encryption or cryptography technologies.

Cypherpunk Holdings is an early pioneer in the crypto and privacy investment space. The
company has a history of investing in emerging trends and technologies surrounding
cryptography. This includes our $2m CAD investment in non fungible token, or NFT, platform
Animoca Brands.

For hundreds of years, people have collected rare objects such as paintings, cars and coins,
among other items. This has been done for emotional, aesthetic and economic value. Having
ownership of rare items has always represented status and provides a special feeling of

With the evolution of commercially-used cryptographic technologies picking up pace, a new field
of collectibles has emerged. This is known as non-fungible tokens, or NFTs. Built on top of
cryptocurrency-based blockchain protocols, NFTs enforce the most important features of
collectibles – scarcity, limit in quantity and uniqueness.

For example, a single NFT can represent a “tokenized” or cryptographically-enforced rare digital
asset or a version of a real-world asset. The authenticity and ownership of this tokenized asset
can then be easily confirmed with the help of the transparency blockchain technology enables.

The term fungibility represents interchangeability and lack of uniqueness in an asset. For
example, a $50 bill can be easily switched with another $50 bill and most people cannot tell the

NFTs are non-fungible. This means a digital asset such as an art image could be easily drawn
by another artist and also be put on blockchain. Yet it will not be equivalent or interchangeable
with the original in terms of ownership. This is because it is cryptographically secured and verified

Among many uses for NFTs, one field that seems to be extremely promising for this innovation is
gamification. In recent years the gaming industry is exceeding the movie and the music industries
combined in terms of engagement. As such, games are being gamified with collectibles, some
of them usable in games, an innovation that has emerged in recent years.

Enter NFTs, which open entirely new dynamics into the gaming industry. Prior to NFTs, players
would purchase items yet were unable to trade or sell them anywhere, oftentimes not even in the
game they were used in. This often resulted in a locked value or even a total financial loss when
paying for these items after players quit playing a particular game.

NFTs solve this issue by being easily transferable and tradable on a marketplace. This
incentivizes more people to purchase in-game items with reduced risk of illiquidity. Also, increased
utility of items which can be used in several games instead of just one. In addition, NFTs can
resemble items from real life. For example, many gamers dream of having game characters wear
their favorite brand of shoes. This is because emotional attachment has always played a key role
in the gaming community.

Due to Cypherpunk Holdings’ strong belief in cryptocurrency, privacy and cryptography tech, this
is why the firm has become an investor in Animoca Brands.

Among many exciting things, one of interesting developments is Animoca’s SAND project
partnering with celebrities. This includes well-known international artists such as hip-hop
impresario Snoop Dog. SAND, a game similar to Minecraft, allows players to build and interact in
a virtual world. For instance, they are able to buy land adjacent to Snoop Dog or participate in his
VIP parties. This provides them with a unique opportunity to interact with celebrities in a virtual

Cypherpunk Holdings is excited to be at the forefront of NFTs with Animoca Brands, a company
that is the industry leader.