About this Statement
Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Fantom (FTM) 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 Fantom
Established in 2018 by South Korean computer scientist Dr. Ahn Byung Ik, Fantom was designed as a high-performance, scalable, and secure smart-contract platform. The network is now overseen by the Fantom Foundation, led by CEO Michael Kong, which coordinates the ongoing development and expansion of the ecosystem. Fantom addresses the scalability and speed limitations of earlier blockchains through its Lachesis consensus mechanism, a revolutionary Asynchronous Byzantine Fault Tolerant (aBFT) engine. Unlike traditional synchronous systems, Lachesis allows the network to process transactions asynchronously, significantly increasing throughput and providing "absolute finality," meaning transactions are confirmed and irreversible in approximately one to two seconds.
In late 2024, the Fantom ecosystem underwent a major strategic rebranding to Sonic Labs. The network's next evolution, known as Sonic, is a high-performance Layer 1 blockchain that is fully compatible with the Ethereum Virtual Machine (EVM) but offers significantly improved throughput of up to 10,000 transactions per second and sub-second finality. As part of this transition, the native utility token is migrating from FTM to S at a 1:1 ratio. While the original Fantom Opera network remains operational, the Sonic network serves as the primary technical roadmap for the ecosystem moving forward. The Sonic upgrade introduces a refined version of the Lachesis consensus mechanism, utilizing an Asynchronous Byzantine Fault Tolerant (aBFT) engine that allows for parallel transaction execution. A core feature of the updated network is the Sonic Gateway, a secure, native bridge to Ethereum designed to minimize the security risks associated with third-party cross-chain protocols. This infrastructure is overseen by Sonic Labs, currently led by CEO Mitchell Demeter and Chief Technology Officer Andre Cronje.
Risks
As with all assets, investing in Fantom 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 Fantom 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 Fantom.
Departure of Key Fantom Personnel
The Fantom Foundation experienced the high-profile departure of technical adviser Andre Cronje and architect Anton Nell in early 2022. Since the events of 2022, Andre Cronje has officially returned to the ecosystem and currently serves as the Chief Technology Officer (CTO) of Sonic Labs. In this role, he leads the technical design and development of the Sonic network and its native bridge technology. While his return has stabilized developer and investor sentiment, the project remains heavily influenced by a small number of high-profile contributors, and their future participation continues to be a factor in market sentiment. Investors should consider this situation, and the potential for market sentiment to be affected by this event or any similar events in the future.
FTM token reliance on multiple networks
The risks associated with cross-chain dependency were highlighted by the July 2023 exploit of the Multichain bridge, which resulted in significant asset losses for users within the Fantom ecosystem and impacted the liquidity of various wrapped assets. To mitigate these vulnerabilities, the Sonic network introduced the Sonic Gateway, which includes a failsafe mechanism allowing users to recover funds on the origin chain even during bridge downtime. Investors should note that while the 1:1 migration to the S token is designed to be seamless, the transition period involves technical risks and may result in reduced liquidity for the original FTM token over time. Any fundamental issues in any of these networks could impact FTM’s market sentiment, market cap, and token 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.
Last updated: March 24, 2026
