Coinsquare Capital Markets Inc. (“Bitbuy”) is offering crypto contracts to purchase and sell PYTH 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.
PYTH is the governance token of Pyth Network, which is a first-party oracle network. Pyth Network was originally built on the Solana network, but has since forked its own chain from Solana called Pythnet.1 As an oracle service, Pyth delivers real-time market data and price feeds to dApps across numerous blockchains. Pyth’s oracle protocol aggregates data on-chain to guard against inaccuracies and manipulation.2 PYTH holders who wish to vote on network proposals must first stake their PYTH to earn voting power.3
As with all assets, investing in PYTH is not without some general risks. All of the risks of trading crypto that are identified and explained in our Risk Statement apply to PYTH. 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 PYTH 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 PYTH.
As PYTH is an SPL token and the Pyth Network’s mainnet is forked from the Solana network, it is highly dependent on the continued stability of that network. Any fundamental issues in the Solana network may impact PYTH’s token value. Investors should consider this dependency, and the Solana network’s history with respect to stability, when evaluating PYTH.
Pyth Network is a newer competitor in the decentralized oracle space, going up against more established oracle protocols such as Chainlink, Band Protocol, DIA, and many others. If Pyth fails to grow its userbase and achieve widespread adoption in favour of any other oracle protocol, it may negatively affect the market value of PYTH. Potential buyers should consider Pyth Network’s competitive position in the oracle market when evaluating PYTH.
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:
Pyth Network Twitter: https://x.com/PythNetwork
Pyth Network Whitepaper: https://www.pyth.network/blog/pyth-network-whitepaper-version-2-0
Last updated: December 19, 2024
