About this Statement
Bitbuy Technologies Inc. (“Bitbuy” or “we”) believes that our users should understand the crypto assets that they are able to trade using our crypto trading platform (the “Platform”). One of the crypto assets we offer through the Platform is ETC. We created this summary to help you understand the basics of ETC as well as some of the risks involved in acquiring it. While we tried to describe the key features of ETC here, this summary isn’t meant to tell you everything you’d want to know before acquiring it. You should also do your own research on LRC to make sure you are comfortable acquiring it.
About Ethereum Classic
In 2014, Ethereum founders Vitalik Buterin, Gavin Wood and Jeffrey Wilcke began work on a next-generation blockchain that had the ambitions to implement a general, fully trustless smart contract platform. In 2016, after a controversial hard fork, Ethereum mainline spawned a new network with new consensus rules, giving birth to Ethereum Classic. Today, it continues to follow the original network rules and has maintained the original Ethereum vision ever since.
As with all assets, investing in Ethereum Classic 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 Ethereum Classic 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 Ethereum Classic.
51% Attacks Against the Ethereum Classic Network
The Ethereum Classic network experienced three instances of 51% attacks in August 2020 where a single entity gained control of 51% of the network nodes. In this situation that single entity had the ability to control the state of the Ethereum Classic blockchain.1 The potential for this type of attack exists in all decentralized blockchains that employ proof-of-work consensus, however three successfully executed attacks may be indicative of unreliable security, or a low cost to successfully execute an attack within the Ethereum Classic Network. Investors should consider the network security and history of 51% attacks when evaluating ETC.
Bitbuy is offering crypto contracts to purchase and sell LRC in reliance on a prospectus exemption contained in the exemptive relief decision Re Bitbuy Technologies Inc. dated November 30, 2021. 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 provinces and territories of Canada would not apply in respect of a misrepresentation in this statement.
No Canadian securities regulatory authority has expressed an opinion about LRC, including an opinion that ETC is not itself a security and/or derivative.
- Forkast.News. “51% Attacks a “Universal Problem” For Proof of Work, says ETC Labs CEO.” Decrypt. September 7, 2020. https://decrypt.co/41044/repeated-51-hacks-on-ethereum-classic-are-increasingly-frustrating-says-etc-labs-ceo