Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and POL 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.
In February 2021, Ethereum layer 2 scaling solution Matic Network rebranded as Polygon – an interoperable blockchain scaling framework for building Ethereum-compatible blockchains. It seeks to address some of Ethereum’s major limitations, including its transaction speed, high gas fees, and lack of community governance – all using a novel sidechain solution. The MATIC token was originally used in the Polygon ecosystem as the network’s native token. On September 4, 2024, Polygon officially implemented the POL token as its new ecosystem token, replacing MATIC for all network actions including participating in network governance, contributing to security through staking, and paying gas fees.
Risks
As with all assets, investing in POL 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 POL. In addition to the general risks, we outline some risks that are specific to Polygon 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 Polygon.
POL token market history and ongoing migration
On September 4, 2024, the Polygon network successfully completed the upgrade of MATIC to POL as the network’s native token to power governance, gas fees, staking, and other network functionality. While POL has replaced MATIC on a 1:1 basis for the network's core operations, the migration for legacy MATIC tokens held on the Ethereum network to POL remains open-ended via the Polygon Portal. Purchasers of POL should be aware that market dynamics may shift as the ecosystem fully transitions to the new token standard.
Polygon Network’s dependance on the Ethereum Network
Note that CCML only supports POL as an ERC20 token on the Ethereum Mainnet (Layer 1). The Polygon Network is a combination of multiple layer 2 scaling solutions, built on top of the Ethereum blockchain, for the purpose of increasing transaction throughput and decreasing transaction fees on Ethereum Mainnet, and is consequently highly dependent on the sustained health of the Ethereum network.2 Any fundamental deficiencies in the Ethereum network could have downstream impacts on Polygon and its market capitalization.
Concentration of Polygon (POL) holdings
Most of the current MATIC supply is held by Polygon’s founders and developers, meaning they hold an unbalanced weight on voting power, which could lead to potentially biased voting. As POL is intended to replace MATIC on a 1:1 basis, any large concentration of MATIC is likely to become a large concentration of POL. Recent data indicates that the top 100 wallet addresses hold approximately 96% of the total POL supply. While analysis suggests a significant portion of these tokens are held in smart contracts for staking, bridges, and migration reserves, this high degree of concentration presents a risk of centralized control or price volatility.
Unclear status of Ethereum 2.0 and the implications for layer 2 scaling solutions
Polygon’s purpose is to provide access to Ethereum Mainnet with increased speed, increased throughput, and reduced costs. Polygon has multiple projects that aim to provide scaling solutions through various techniques such as sidechains, and zero-knowledge rollups. Polygon constitutes a key part of Ethereum's "rollup-centric" roadmap. Ethereum has shifted its focus from execution sharding to data availability improvements, such as "Proto-Danksharding" (EIP-4844), which was implemented in the "Dencun" upgrade in March 2024. Future upgrades, such as the "Surge," aim to further reduce costs for layer 2 networks like Polygon. The timeline for these future upgrades remains variable, which could impact the efficacy and market capitalization of scaling solutions like Polygon.
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
