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 on the Platform is SHIB. We created this summary to help you understand the basics of SHIB as well as some of the risks involved in trading it. While we tried to describe the key features of SHIB here, this summary isn’t meant to tell you everything you’d want to know before investing in SHIB. You should also do your own research on SHIB to make sure you are comfortable investing in it.
About Shiba Inu
Shiba Inu was founded by an anonymous person or collective named Ryoshi in August 2020. One of its unique qualities include having an intentionally abundant supply (1 quadrillion) to justify a low price per unit and high circulation. Historically, one of the most prominent uses of this Ethereum-backed meme token contender to Dogecoin was for India’s Covid-relief fund. From the 50% that Ryoshi handed over to Ethereum co-founder Vitalik Buterin, SHIB was utilized for the largest crypto donation in history. Buterin then proceeded to burn 40% of its total supply to a dead wallet, ensuring Shiba Inu’s long-term success and stability. Since its inception, the Shiba Inu Ecosystem has been created, which includes ShibaSwap DEX, LEASH (a dogecoin peg token), and BONE (ShibaSwap governance token).
Bitbuy only offers trading for SHIB1
Risks
SHIB reliance on the Ethereum Network
As SHIB is an ERC-20 token on the Ethereum network, it is highly dependent on the continued stability of that network. Any fundamental issues in the Ethereum network may impact SHIB’s smart contract or token value. Investors should consider this dependency when evaluating Shiba Inu.2
Shiba Inu as a Memecoin
Shiba Inu is one of many digital assets that could be classified as a memecoin. Memecoins follow internet trends and are susceptible to volatility influenced by social media activity, online jokes, and adoption or comments by celebrities or public figures. In October 2021, Shiba Inu saw a very fast and very significant increase in its market capitalization as its meme status grew. However, as with typical internet memes, trends may be fleeting and those steep increases could level off very quickly as meme-followers lose interest.3
Like other crypto assets, there are some general risks associated with investing in SHIB. We describe many of these general risks in the risk statement we publish on our website, including risks relating to: (i) volatility; (ii) access, loss or theft, (iii) control of processing power; (iv) settlement of transactions on crypto asset networks; (v) momentum pricing; (vi) private keys; (vii) internet disruptions; (viii) faulty code; (ix) network development and support; (x) regulatory risk; (xi) network forks; (xii) air drops; (xiii) voting rights; (xiv) cybersecurity incidents and other systems and technology problems; and (xv) unforeseeable risks. We also point out some risks that are specific to SHIB below. While we tried to describe the key risks associated with SHIB here and in our risk statement, these aren’t all of the risks associated with trading in SHIB. You should also do your own research on SHIB to make sure you are comfortable investing in it.
How Bitbuy Decides to List Crypto Assets
Bitbuy reviews crypto assets before making them available for trading on the Platform. In making our decision to list a new crypto asset, we consider publicly-available information about the crypto asset, including (among other things) its creation, design, governance, usage, supply, demand, maturity, utility, liquidity, material technical risks and legal and regulatory risks.
To date, we have only made crypto assets available for trading on the Platform which have significant supply, demand and liquidity. In our experience, crypto assets with these qualities tend to also satisfy the other criteria we evaluate as part of our review. That being said, our review process is fulsome and flexible, and we don’t prioritize any one factor over another. You should review the risk statement published on our website for more information about our procedures for determining whether to make a crypto asset available for trading on the Platform.
Regulatory Information
Bitbuy is offering crypto contracts to purchase and sell in reliance on a prospectus exemption contained in the exemptive relief decision Re Bitbuy Technologies Inc. dated November 30th, 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 SHIB, including an opinion that SHIB is not itself a security and/or derivative.
References
- SHIBA TOKEN. “A Decentralized Meme Token that Evolved into a Vibrant Ecosystem.” https://shibatoken.com/
- CoinMarketCap. “Shiba Inu (SHIB).” https://coinmarketcap.com/currencies/shiba-inu/
- John Bogna. “What Is a Meme Coin and How Do They Work?” December 20, 2021. https://www.pcmag.com/how-to/what-is-a-meme-coin-how-do-they-work