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 Basic Attention Token (“BAT”). We created this summary to help you understand the basics of BAT as well as some of the risks involved in acquiring it. While we tried to describe the key features of BAT 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 BAT to make sure you are comfortable acquiring it.
Description of BAT
BAT is an Ethereum-based token (known as an ERC-20 token) that compensates the browser user for participating in Brave’s decentralized advertisement exchange. BAT is premised on the idea that digital advertising today is inefficient and is failing internet users, publishers and advertisers. Brave blocks invasive ads and trackers and uses a ledger system that anonymously measures user attention in an attempt to accurately reward publishers and consumers. Brave rewards consumers in BAT for viewing ads in addition to allowing consumers to pay contributions in BAT to various websites and content creators in the form of a tip. Brave uses a micropayment ledger whereby users, publishers and advertisers can track the movement of BAT. Through Brave’s micropayment ledger, users, publishers and advertisers can enter smart contracts in order to move payments between each other.
According to BAT’s whitepaper, BAT are meant to function as a unit of exchange or a functional good. The whitepaper states that BAT are not refundable, nor are they securities or for speculation.
Like other crypto assets, there are some general risks associated with acquiring BAT. 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 a risk specific to BAT below. While we tried to describe the key risks associated with BAT here and in our risk statement, these aren’t all of the risks associated with trading in BAT. You should also do your own research on BAT to make sure you are comfortable acquiring it.
Competition from Established Browsers
While the user base for the Brave Browser is growing, competition remains with other web browsers such as Google’s Chrome and Mozilla’s Firefox. As of today, Google’s Chrome surpasses most competitors by a very large margin and remains the dominant web browser.
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 BAT 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 BAT, including an opinion that BAT is not itself a security and/or derivative.