Coinsquare Capital Markets Inc. (“Bitbuy”) is offering crypto contracts to purchase and sell Chiliz in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the exemptive relief decision dated October 12, 2022. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.
No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Bitbuy’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.
Bitbuy has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.
About Chiliz
The Chiliz brand was established in 2012 as part of the Mediarex Group. Based in Malta, the group primarily serves the sports and entertainment sectors. Chiliz is a Layer-1 blockchain ecosystem specifically designed for the sports and entertainment industries. While it continues to power the Socios.com platform—enabling fans to engage with teams and acquire Fan Tokens for voting rights and rewards—it has evolved into a comprehensive "SportFi" infrastructure. CHZ serves as the native utility and governance token for the Chiliz Chain, where it is used for staking, securing the network through a Proof-of-Staked-Authority (PoSA) consensus mechanism, and paying transaction fees. The ecosystem now supports a broader range of decentralized applications, including tokenized real-world assets (RWA) such as sports media rights and team equity.
Risks
As with all assets, investing in Chiliz is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to Chiliz below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Chiliz.
Transition to Sovereign Layer-1 Infrastructure
Chiliz has transitioned from its legacy status as a multi-chain token to operating on its own sovereign, EVM-compatible Layer-1 blockchain known as the Chiliz Chain. While a portion of the CHZ supply remains on the Ethereum blockchain following the 2023 mainnet migration, the primary utility, security, and governance of the asset are now centralized on the Chiliz Chain. This architectural shift has reduced direct operational reliance on third-party networks like BNB Smart Chain or Solana for its core ecosystem. However, the integrity of the asset is now fundamentally dependent on the stability of the Chiliz Chain’s own validator set and its specific Proof-of-Staked-Authority (PoSA) consensus model.
To be made available for trading on Bitbuy’s platform, a digital asset must pass the following due diligence reviews:
Bitbuy undertakes these three levels of due diligence in order to determine whether the digital asset is compliant with our legal and regulatory obligations, is secure, and has historical data supporting a beneficial business case. Bitbuy’s New Product Committee must provide final approval for a new digital asset to be made available on the platform.
Last updated: March 24, 2025
