About this Statement
Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell EigenCloud (EIGEN) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. 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 EIGEN
EIGEN is the utility token of EigenCloud (formerly EigenLayer), a protocol that allows networks to leverage Ethereum’s proof-of-stake consensus to secure their own infrastructure through "restaking". It has evolved into a "universal intersubjective work token" designed to secure a "verifiable cloud" where off-chain computation meets on-chain trust. EigenCloud supports a diverse range of Actively Validated Services (AVSs), including EigenDA for high-throughput data availability and EigenCompute for verifiable AI agents. The protocol has expanded to support multi-chain verification on networks like Base and Solana, allowing AVSs to operate across different ecosystems. Many AVSs secured by ETH restaking address objective faults—misbehaviors that can be mathematically or cryptographically proven on-chain and penalized through slashing. EIGEN is specifically designed for "intersubjectively attributable faults"—tasks where misbehavior is not provable by a smart contract but is observable by the community. Staking EIGEN provides cryptoeconomic security for these tasks, utilizing a "fork-aware" model where social consensus can trigger a token fork to penalize malicious operators. The EigenLayer whitepaper explains in detail the extreme complexity of the protocol and how EIGEN staking secures AVSs with intersubjectively attributable faults.2
Risks
As with all assets, investing in EIGEN is not without some general risks. All of the risks of trading and staking crypto that are identified and explained in our Risk Statement apply to EIGEN .
In addition to the general risks, we outline some risks that are specific to EIGEN 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 EIGEN.
Reliance on the Ethereum Network
As EIGEN is only supported by CCML as an ERC-20 token on the Ethereum network, it is highly dependent on the continued stability of that network. Any fundamental issues in the Ethereum network may impact EIGEN’s smart contract or token value. Investors should consider this dependency when evaluating EIGEN.
EIGEN Token Distribution Concerns
EIGEN was initially distributed via "stakedrops" to early users who restaked ETH, though geographical restrictions—notably excluding U.S. residents—and the significant 55% combined allocation to early contributors and investors drew community criticism. As of January 2026, supply pressure remains a concern following major "cliff" unlocks, such as the release of 9.7% of the circulating supply on January 1, 2026. Furthermore, governance proposals like ELIP-12 aim to restructure incentives by shifting rewards toward active security providers and fee-generating services to address long-term value accrual. The concerns surrounding EIGEN token distribution should be considered when evaluating EIGEN.
EigenLayer Complexity
The EigenCloud ecosystem is highly complex, introducing novel primitives like "intersubjective work tokens" and "verifiable cloud" infrastructure. This complexity extends to new services like EigenCompute and EigenDA, as well as multi-chain deployments on Base and Solana, which introduce additional technical and operational risks. Investors are encouraged to review the updated technical documentation for EigenCloud to understand these evolving architectures. Potential investors should read the whitepaper [ https://docs.eigenlayer.xyz/assets/files/EIGEN_Token_Whitepaper-0df8e17b7efa052fd2a22e1ade9c6f69.pdf] in entirety to ensure they understand and are comfortable with the technology that is EigenLayer and the EIGEN token when evaluating EIGEN.
Bitbuy’s Due Diligence for Digital Assets
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.
References
Last updated: March 24, 2026
