Coinsquare Capital Markets Inc. (“Bitbuy”) is offering crypto contracts to purchase and sell JUP 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.
JUP is the governance token of Jupiter, a leading swap aggregation protocol that provides essential liquidity infrastructure to the Solana ecosystem. The Jupiter protocol provides different DEX features such as Limit Order, DCA/TWAP, Bridge Comparator, and Perpetuals Trading.1 The protocol is built on top of Solana and thus utilizes Solana’s consensus mechanism, but also offers staking of JUP tokens. Those who stake their JUP tokens are eligible to vote on protocol proposals through Jupiter’s governance mechanism.2
As with all assets, investing in JUP is not without some general risks. All of the risks of trading crypto that are identified and explained in our Risk Statement apply to JUP. 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 JUP 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 JUP.
As JUP is an SPL token and the Jupiter protocol is built on the Solana network, it is highly dependent on the continued stability of that network. Any fundamental issues in the Solana network may impact JUP’s token value. Investors should consider this dependency, and the Solana network’s history with respect to stability, when evaluating JUP.
Jupiter has adequate developer documentation intended to allow developers to integrate Jupiter into dApps. Additionally, Jupiter has adequate guides for users that helps any potential user understand the various features available in the Jupiter protocol. However, Jupiter does not have any published whitepaper that explains the technology behind the DEX or how its staking mechanism works. It is explained that staking is a requirement to earn voting power, however there is no available documentation that explains how the staking mechanism secures the protocol. Potential buyers should consider this lack of typical documentation when evaluating JUP.
Of the initial supply of JUP tokens, 50% was reserved for the Jupiter team. 20% of the initial supply was immediately put into a 2-year vesting schedule for the existing team members at the time of the token launch, and the remaining 30% was reserved for future team members. This equates to 4 billion JUP for the Jupiter team.3 Reserving 50% of the initial supply for the protocol team is abnormal and could lead to a lack of centralization in the future as these tokens vest and are distributed to a relatively small amount of people. Potential buyers should consider the distirbution of tokens when evaluating JUP.
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.
Other Useful Links:
Jupiter Twitter: https://x.com/JupiterExchange
Last updated: December 19, 2024
