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.
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, powering Socios.com, gives sports and e-sports fans the ability to support their favorite teams, games, leagues and events while gaining rewards for their loyalty. Its native token is CHZ which can be used to trade for fan tokens. Fans may also obtain voting rights for a specific team on the Chiliz platform by trading their CHZ for that team's respective fan token. Each vote is executed as a group of smart contracts to maintain transparency over the blockchain ecosystem.
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.
The relevant sections in the Risk Statement are as follows:
Platform Risk, Short History Risk, Price Volatility, Potential Decrease in Global Demand for Digital Assets, Potential for Illiquid Markets, Transfers of Digital Assets are Irreversible, Concentration Risks, Uncertainty in Regulation, Financial Institutions May Refuse to Support Transactions Involving Digital Assets, Digital Assets’ Blockchain May Temporarily or Permanently Fork and/or Split, Cyber-Security Risk, Airdrops, Issues with Cryptography Underlying Digital Asset Networks, Internet Risk, Open Loop System, Risk if Entity Gains a 51% Share of Digital Asset Network, Possible Increase in Transaction Fees, Possible Increase in Service Fees, Limited Canadian Investor Protection Fund Account, No Voting Rights, Custody of Digital Assets, Custody Risk Insurance, Threats to Bitbuy’s Physical Assets, Covid-19 Outbreak, Use of Leverage, Halting, Suspending, and Discontinuing Digital Assets.
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.
Although CHZ was initially offered only as an ERC20 token on Ethereum Mainnet, it was subsequently made available as a BEP20 token on BNB Network, a token on Solana Network, and recently as a TRC-20 token on Tron Blockchain.1,2 Consequently, the supply of CHZ is distributed among these various networks, meaning that the integrity of CHZ token is dependent on the stability and security of these different blockchain systems. Any fundamental issues in any of these networks could impact CHZ’s market cap and price.
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.
