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 PEPE. We created this summary to help you understand the basics of PEPE as well as some of the risks involved in trading it. While we tried to describe the key features of PEPE here, this summary isn’t meant to tell you everything you’d want to know before investing in PEPE. You should also do your own research on PEPE to make sure you are comfortable investing in it.
As with all assets, investing in Pepecoin 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 Pepecoin 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 Pepecoin.
PEPE reliance on the Ethereum Network
As PEPE 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 PEPE’s smart contract or token value. Investors should consider this dependency when evaluating Pepecoin.
Pepecoin and the Nature of Memecoins
Pepecoin 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. However, as with typical internet memes, trends may be fleeting and those steep increases could level off very quickly as meme-followers lose interest.1
PEPE Founders Dump Reserved Holdings
In August 2023, a large amount (approximately $15M worth) of PEPE tokens were moved from the Pepecoin founders’ multisig wallet to various centralized exchanges. When this movement of tokens was noticed by news outlets, the price of PEPE dropped significantly. After news broke, the PEPE twitter account posted, claiming that these tokens were stolen by disgruntled developers, but since their exit from the project the multisig wallet had been updated, no longer giving those former developers access. Following this incident, the price of PEPE continued to fall with negative sentiment growing within the Pepecoin community. As a result, in October 2023 the remaining Pepecoin developers announced that a new team of advisors has been brought on to help guide the Pepecoin community, and that 6.9 trillion tokens (approximately $6M worth) had been burned and permanently removed from the total token supply.2 Potential investors should consider this series of events and make their own determination about the potential implications when evaluating Pepecoin.
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.
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 PEPE, including an opinion that PEPE is not itself a security and/or derivative.
- John Bogna. “What Is a Meme Coin and How Do They Work?” PC Mag. December 20, 2021. https://www.pcmag.com/how-to/what-is-a-meme-coin-how-do-they-work
- Margaret Rouse. “Pepcoin (PEPE).” Techopedia. Ocotber 26, 2023. https://www.techopedia.com/definition/pepe-coin-pepe
Other Useful Links:
Pepecoin Twitter: https://twitter.com/pepecoineth