Crypto Asset Statement - Fantom (FTM)

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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 Fantom (“FTM”). We created this summary to help you understand the basics of FTM as well as some of the risks involved in acquiring it. While we tried to describe the key features of FTM 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 FTM to make sure you are comfortable acquiring it.

Description of FTM

FTM is a crypto asset that exists as a token on the following blockchains: the Ethereum network, the Binance Smart Chain and Fantom’s Opera Chain. FTM is associated with the Fantom smart contract platform (“Fantom”), which was developed by the Fantom Foundation. The Fantom Foundation was founded by South Korean computer scientist Dr. Ahn Byung Ik.

As a smart contract platform that allows for the deployment of crypto assets and decentralized applications, Fantom competes directly with Ethereum and similar projects for market share. The primary features of Fantom which distinguish it from such projects are its consensus mechanism and multi-chain structure.

Fantom’s consensus mechanism is referred to as being asynchronous byzantine fault tolerant. Generally speaking, this descriptor means that Fantom can process data at different times and can tolerate up to a third of its users engaging in faulty or malicious behavior without undermining the network. Fantom’s consensus mechanism also allows for transactions to be confirmed and finalized almost instantaneously. Put together, these characteristics purportedly make Fantom faster and more secure than other networks while also maintaining decentralization.

Fantom is intended to work by giving each application its own blockchain. Having separate chains means that each chain can have custom tokens and governance rules. The chains’ shared use of Fantom’s consensus mechanism is also meant to allow chains to interact with each other and benefit from the speed and security of the underlying technology. Fantom’s main blockchain, Opera, aims to solve scalability issues that hinder existing blockchains through the rapid processing of blocks on a large scale. Opera uses the Ethereum Virtual Machine to allow developers to port their existing Ethereum-based applications quickly and easily.

FTM tokens are intended to be used to pay transaction and smart contract fees, secure the network through Fantom’s Proof-of-Stake consensus mechanism and be used to vote within Fantom’s governance system. FTM holders are able to use their tokens as collateral (or “stake” their tokens) to run a “node” and earn rewards in the form of FTM.


Like other crypto assets, there are some general risks associated with acquiring FTM. 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 a risk specific to FTM below. While we tried to describe the key risks associated with FTM here and in our risk statement, these aren’t all of the risks associated with trading in FTM. You should also do your own research on FTM to make sure you are comfortable acquiring it.

Adoption Risk

The success of Fantom is predicated on developers choosing to build and use Fantom-native applications. There is significant competition between crypto asset networks seeking to offer smart contract platforms for decentralized applications. The price of FTM is likely to decline in the long run if constructive and meaningful applications are not created, supported and used on Fantom.

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 FTM 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 FTM, including an opinion that FTM is not itself a security and/or derivative.

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