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 ApeCoin (“APE”). We created this summary to help you understand the basics of APE as well as some of the risks involved in acquiring it. While we tried to describe the key features of APE 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 APE to make sure you are comfortable acquiring it.
Description of APE
APE is an Ethereum-based token (known as an ERC-20 token) that functions as a utility and governance token for a decentralized autonomous organization known as the ApeCoin DAO. The ApeCoin DAO follows a proposal process which allows APE holders to direct the APE Foundation, a Cayman Islands foundation that administers the decisions of the ApeCoin DAO and is responsible for day-to-day administration, bookkeeping, project management and other tasks. The APE Foundation has a special council that oversees its administrators, which APE holders will later be able vote on. The initial members of the council are Alexis Ohanian, Amy Wu, Maaria Bajwa, Yat Siu and Dean Steinbeck.
The ApeCoin DAO is best known for its association with the Bored Ape Yacht Club (“BAYC”) non-fungible token (“NFTs”) collection. BAYC is the most valuable NFT collection of all-time by market cap. BAYC was created by a company named Yuga Labs. The total supply of APE is permanently fixed at 1 billion tokens. Initially, 15% of the total APE supply was airdropped to owners of the BAYC NFT collection and several related NFT collections. Yuga Labs and its founders also received APE tokens when APE first launched.
In addition to its governance function, APE is meant to: (i) function as a shared and open currency that can be used without centralized intermediaries; (ii) provide holders access to exclusive games, merchandise, events and services; and (iii) allow third-party developers to participate in the APE ecosystem by incorporating APE into services, games and other projects.
The BAYC NFT collection is known for its extremely high value. Given the recent creation of APE in March 2022 and its association with BAYC, it is likely that the performance of APE will be linked to the reputation of the BAYC NFT collection. Should demand decrease for the BAYC NFT collection, there is a risk that APE may also decline in value.
Like other crypto assets, there are also some general risks associated with acquiring APE. 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. While we tried to describe the key risks associated with APE here and in our risk statement, these aren’t all of the risks associated with trading in APE. You should also do your own research on APE to make sure you are comfortable acquiring 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.
Bitbuy is offering crypto contracts to purchase and sell APE 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 APE, including an opinion that APE is not itself a security and/or derivative.