Note: Right now this currency is only being offered to select Private Wealth clients. Click here to learn more about our Private Wealth (OTC) team and what they can do for you.
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 GALA. We created this summary to help you understand the basics of GALA as well as some of the risks involved in acquiring it. While we tried to describe the key features of GALA 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 GALA to make sure you are comfortable acquiring it.
Description of GALA
GALA is a utility token that primarily functions as an in-game currency for video games developed by Gala Games. GALA is available as an Ethereum-based token (known as an ERC-20 token) or as a BEP-2 token on the Binance Smart Chain (Bitbuy users are currently able to acquire the ERC-20 version of GALA via the Platform). Gala Games was founded in 2019 by Eric Schiermeyer and Michael McCarthy. The company seeks to develop a gaming ecosystem that offers users ownership over in-game items.
Video games developed by Gala Games allow players to purchase in-game items that are non-fungible tokens (“NFTs”) using GALA. Because these items are NFTs, their ownership can be tracked and recorded on the blockchain. Players are also able to trader their in-game items among one another using GALA. GALA may also be used to purchase “Founder Nodes”. Founder Nodes allow users to earn additional GALA as rewards and vote on various proposals relating to Gala Games activities, including, as an example, whether or not specific game ideas should be developed.
As an ERC-20 token and BEP20 token, the strength of GALA is dependent on the strength of the Ethereum and Binance Smart Chain networks, respectively. If either the Ethereum or Binance network were to experience a serious issue, GALA’s price could decline significantly.
The price of GALA could also decline in connection with issues related to scaling and user popularity. If users stop playing using the Gala Games platform, there could be an adverse effect on the token’s price. This effect could result if competing platforms draw users away from Gala Games or if there is an overall decline in the popularity of play-to-earn games in general. Additionally, if the game cannot support new influxes of users or if the game cannot regulate content, users may leave the game, thus affecting GALA’s price.
Gala Games has continuing control over the software underlying Founder Nodes. If Gala Games fails to maintain the software underlying Founder Nodes, the price of GALA may be adversely impacted.
Like other crypto assets, there are also some general risks associated with acquiring GALA. 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 GALA here and in our risk statement, these aren’t all of the risks associated with trading in GALA. You should also do your own research on GALA 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 GALA 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 GALA, including an opinion that GALA is not itself a security and/or derivative.