About this Statement
Coinsquare Capital Markets Ltd. (“Coinsquare”) is offering crypto contracts to purchase and sell Celesta (TIA) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. 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.
About TIA
TIA is the native token of Celestia. Celestia describes itself as a scale-out data availability-focused blockchain. It uses a core component of sharding technology to give itself the scalability that allows it to compete with other modern blockchains, expanding with the amount of users and allowing developers to launch their own blockchain on top of Celestia. Its main differentiator is its efficient solution to the data availability problem be empolying light nodes to sample chunks of each block to verify data. This allows the block size to increase without increasing the chain verification costs.1
Risks
As with all assets, investing in TIA is not without some general risks. All of the risks of tranding and staking crypto that are identified and explained in our Risk Statement [hyperlink to risk statement] apply to TIA. The relevant sections in the Risk Statement are as follows:
Platform Risk, Short History Risk, Price Volatility, Potential Decrease in Global Demand for Digital Assets, Potential for Illiquid Markets, Transfers of Digital Assets are Irreversible, Concentration Risks, Uncertainty in Regulation, Financial Institutions May Refuse to Support Transactions Involving Digital Assets, Digital Assets’ Blockchain May Temporarily or Permanently Fork and/or Split, Cyber-Security Risk, Airdrops, Issues with Cryptography Underlying Digital Asset Networks, Internet Risk, Open Loop System, Risk if Entity Gains a 51% Share of Digital Asset Network, Possible Increase in Transaction Fees, Possible Increase in Service Fees, Limited Canadian Investor Protection Fund Account, No Voting Rights, Custody of Digital Assets, Custody Risk Insurance, Threats to Coinsquare’s Physical Assets, Covid-19 Outbreak, Use of Leverage, Halting, Suspending, and Discontinuing Digital Assets.
In addition to the general risks, we outline some risks that are specific to TIA 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 TIA.
Celestia relation to the Cosmos Network
Although Celestia is a layer-1 blockchain, it is heavily intertwined with the Cosmos Network. Celestia was developed using the Cosmos SDK, and it utilizes a Tendermint-based consensus mechanism. While native TIA and the Celestia blockchain are not reliant on the Cosmos network as an ERC20 token is reliant on the Ethereum network, there are still clear links between Celestia and Cosmos as explained above. This relation between the two networks could have the potential to impact market price of either asset based on news or movements in the other asset. Potential investors should be aware of the link between Celestia and Cosmos and consider this when evaluating TIA for investment.
Competition amongst other layer-1 blockchains
Celestia is one of many new layer-1 blockchains that aim to solve the problems of transaction cost, transaction throughput, scalability, and speed that exist with older blockchains. These new networks are in direct competition with each other for similar activity and often employ similar solutions to the same problems listed above.
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.
References:
Other Useful Links:
Celestia Twitter: https://twitter.com/CelestiaOrg
Celestia Whitepapers: https://celestia.org/resources/
