Crypto Asset Statement - Chiliz

About this Statement

Coinsquare Capital Markets Inc. (“Coinsquare”) is offering crypto contracts to purchase and sell Chiliz in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the exemptive relief decision dated July 5, 2022. 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 CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.

No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.  Coinsquare is providing this Crypto Asset Statement on an “as is” basis and makes no representation or warranty as to accuracy or completeness of the contents.   

About Chiliz

The Chiliz brand was established in 2012 as part of the Mediarex Group. Based in Malta, the group primarily serves the sports and entertainment sectors. Chiliz, powering Socios.com, gives sports and e-sports fans the ability to support their favorite teams, games, leagues and events while gaining rewards for their loyalty. Its native token is CHZ which can be used to trade for fan tokens. Fans may also obtain voting rights for a specific team on the Chiliz platform by trading their CHZ for that team's respective fan token. Each vote is executed as a group of smart contracts to maintain transparency over the blockchain ecosystem.

Risks

As with all assets, investing in Chiliz is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to Chiliz below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Chiliz.

CHZ token reliance on multiple networks

Although CHZ was initially offered only as an ERC20 token on Ethereum Mainnet, it was subsequently made available as a BEP20 token on BNB Network, a token on Solana Network, and recently as a TRC-20 token on Tron Blockchain.1,2 Consequently, the supply of CHZ is distributed among these various networks, meaning that the integrity of CHZ token is dependent on the stability and security of these different blockchain systems. Any fundamental issues in any of these networks could impact CHZ’s market cap and price.

Coinsquare’s Due Diligence for Digital Assets

To be made available for trading on Coinsquare’s platform, a digital asset must pass the following due diligence reviews:

  1. Coinsquare Securities Law Assessment
  2. Coinsquare Digital Asset Security Audit
  3. New Digital Asset Business Case

Coinsquare undertakes these three levels of due diligence in order to determine whether the digital asset is compliant with our legal and regulatory obligations, is secure, and has historical data supporting a beneficial business case. Coinsquare’s New Product Committee must provide final approval for a new digital asset to be made available on the platform.

References:

  1. CoinMarketCap. “ChiliZ (CHZ).”  https://coinmarketcap.com/currencies/chiliz/
  2. ChiliZ. “Whitepaper V1.09.” https://www.chiliz.com/Chiliz_Corporate-Product-profile-V9.pdf

Published Date: July 5, 2022