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 Amp (“AMP”). We created this summary to help you understand the basics of AMP as well as some of the risks involved in acquiring it. While we tried to describe the key features of AMP 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 AMP to make sure you are comfortable acquiring it.
Description of AMP
AMP is a universal collateral token on the Ethereum network (known as an ERC-20 token) designed to facilitate fast and efficient transfers. AMP was launched in September 2020 and is associated with the Flexa Network. The Flexa Network is a payment processing network created by Flexa Network Inc.
As collateral, AMP seeks to guarantee transfers of value so that they may settle instantly. While the underlying asset which is the subject of the transaction reaches final settlement, a process that can take anywhere from seconds to days, AMP is held in escrow by a collateral manager. Collateral managers are sort of like escrow accounts built with different rules and specifications that can be customized to fit various use cases. Once a transaction successfully settles, the AMP is released and made available to collateralize another transfer.
Holders of AMP may vote on proposals presented by the AMP community, including votes with respect to, among other things, future grant recipients, partnerships, cross-chain integrations and decentralized finance collaborations. Due to the off-chain governance model employed by AMP, votes serve as non-binding indications as opposed to binding resolutions.
Risks
As an ERC-20 token, the strength of AMP is dependent on the strength of the Ethereum network. If the Ethereum network were to experience a serious issue, AMP’s price could significantly decline.
Like other crypto assets, there are also some general risks associated with acquiring AMP. 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 AMP here and in our risk statement, these aren’t all of the risks associated with trading in AMP. You should also do your own research on AMP 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.
Regulatory Information
Bitbuy is offering crypto contracts to purchase and sell AMP 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 AMP, including an opinion that AMP is not itself a security and/or derivative.