Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Loopring (LRC) 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 Loopring
Loopring is an open source protocol for building decentralized exchanges. It is network-agnostic and can be used on any blockchain with smart contract functionality. It provides a solution for the most outstanding challenge of all decentralized protocols – high performance without a tradeoff in security.
Risks
As with all assets, investing in Loopring 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 Loopring 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 Loopring.
Ethereum Upgrade Plans and Layer 2 Solutions
The most prominent portion of Loopring’s technology is an Ethereum layer 2 scaling solution that is built on top of the Ethereum Mainnet (layer 1) to provide increased throughput and lower costs for transactions that are processed through the Loopring network, but then ultimately secured by the Ethereum Mainnet. Loopring utilizes Zero-Knowledge (zk) Succinct Non-Interactive Argument of Knowledge (SNARK, together zk-SNARK) technology to roll multiple transactions up into one transaction on Ethereum layer 1.1 Layer 2 solutions are a key part of the Ethereum network’s scaling roadmap. While Ethereum successfully completed its upgrade to proof of stake consensus in September 2022, the network continues to work towards further scalability upgrades, specifically data availability improvements often referred to as Danksharding. While the Proof of Stake upgrade is complete, future upgrades focused on scalability and data availability may face development delays. These delays mean that layer 2 solutions may face a longer wait for full data availability optimization. Investors should be aware that further delays to Ethereum scalability upgrades could negatively impact market sentiment towards layer 2 solutions, and ultimately affect LRC token price. Additionally, Loopring may simply not be chosen by the Ethereum Network for integration, which also could negatively impact market sentiment and LRC token price.
GameStop NFT Marketplace Powered by Loopring
In July 2022, GameStop Corp (NYSE: GME) launched an NFT marketplace that leveraged Loopring’s technology. However, GameStop subsequently shut down its NFT marketplace in February 2024, citing regulatory uncertainty. This departure of a major institutional partner may have negatively affected market sentiment towards Loopring and the LRC token price. Investors should be aware of this situation and recognize that the loss of this partnership and the inability to secure similar high-profile institutional adoptions in the future could negatively impact market sentiment towards Loopring and the LRC 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
