About this Statement
Coinsquare Capital Markets Inc. (“Coinsquare”) is offering crypto contracts to purchase and sell Pudgy Penguin token (PENGU) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the exemptive relief decision dated October 12, 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 PENGU
PENGU is a token issued on the Solana blockchain using the standard SPL contract. It is a token that has no inbuilt utility or economic features other than being ownable and transferable. The PENGU token was created by the same organization that created the Pudgy Penguins NFT collection and was originally airdropped to NFT holders.
Risks
As with all assets, investing in PENGU 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 PENGU 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 PENGU.
PENGU Tokenomics
Large allocations of the total PENGU supply have been allocated to various groups: 17.8% to the team, 11.5% to the company which issued it, 24.1% to “other communities”. Some of these grants have already vested, others will reach their vesting cliff in December 2025. As of July 2025, 71% of the total supply of tokens that were subject to vesting at launch have already vested.
Reliance on Solana Network
As PENGU is an SPL token on the Solana network, it is highly dependent on the continued stability of that network. Any fundamental issues in the Solana network may impact PENGU's smart contract or token value. Investors should consider this dependency, and the Solana network’s history with respect to stability, when evaluating PENGU.
PENGU's relationship to Pudgy Penguins NFTs
PENGU does not explicitly derive any value from the associated NFT collection, but there is a possibility that any event or market change that causes a loss in value for the NFT collection may impact the value of PENGU token.
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:
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.
