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The information contained in this Crypto Asset Statement was last updated on December 6, 2024

No securities regulatory authority in Canada has expressed an opinion about ENA or any of the other Crypto Contracts or Crypto Assets made available through Newton Crypto Ltd. (Newton) on the Newton Platform, including an opinion that ENA itself is not a security and/or derivative.  Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Newton is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision, dated March 8, 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 provinces and territories of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement or the Newton Platform Risk Statement.

This overview provides a summary of certain risks associated with ENA and is not an exhaustive description or summary of these risks and, in addition, does not take into account an individual’s particular situation or risk tolerance.  Investors are encouraged to conduct their own research prior to trading any crypto asset.

Newton users should read the Newton Platform Risk Statement for additional discussion of general risks associated with crypto assets made available through the Newton platform. A copy of the Newton Platform Risk Statement acknowledged by you is available in your account in the “Statements & Reports” section.

Token Description & Project Background

Coin Description

Ethena (ENA) is the governance token of the Ethena ecosystem, enabling holders to actively participate in the platform's decision-making processes. ENA empowers its community by granting voting rights over key protocol updates, collateral strategies, and other governance matters, ensuring a decentralized and community-driven approach to the platform’s evolution. Built on Ethereum, ENA aligns incentives between token holders and the platform, fostering long-term growth and innovation.

Key Features of Ethena (ENA):

1. Governance Participation: ENA holders can propose, discuss, and vote on key decisions, such as protocol upgrades, parameter changes, and treasury management, ensuring the ecosystem remains decentralized and adaptive.
2. Platform Alignment: ENA incentivizes active participation and long-term commitment to the Ethena ecosystem, aligning the interests of the community and protocol.
3. Staking and Rewards: ENA holders can stake their tokens to earn rewards, further incentivizing ecosystem engagement while supporting protocol stability.
4. Ethereum-Based Security: As an ERC-20 token, ENA leverages Ethereum’s robust security and composability, allowing seamless integration with other DeFi platforms.

Background Information (Issuer, Team, etc.)

Ethena (ENA) was launched alongside the Ethena ecosystem to enable decentralized governance and foster active community involvement. The Ethena team, consisting of blockchain developers and financial experts, designed ENA to ensure the protocol remains adaptive, transparent, and decentralized. ENA is integral to Ethena's vision of creating a stable, decentralized synthetic asset ecosystem, giving its community the tools to shape its future while incentivizing sustainable growth.

Risks of ENA

Like an investment in other crypto assets, an investment in ENA includes the following general risks:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk.

For additional information of general risks associated with crypto assets, you may refer to the Newton Platform Risk Statement. 

Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be an exhaustive discussion pertaining to all such risks and, in addition, there may be other risks that come with exposure to ENA. We encourage all Newton users to perform their own due diligence to assess the risks associated with ENA and to determine whether this level of risk is acceptable to them.  Neither the Ethena team/founders nor Newton guarantees the value of ENA, and holders of ENA will not have any recourse to ENA or Newton if the value of ENA declines for any reason whatsoever.

Newton’s Evaluation Process

Newton has reviewed and assessed ENA prior to making it available on the Newton Platform and has concluded that ENA is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Newton will be required to halt, suspend, and then remove ENA from its platform as described in the Newton Platform Risk Statement.

Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about ENA, including an opinion that ENA is not itself a security and/or derivative.

Based on publicly available information Newton has reviewed ENA, including, but not limited to, a review of the following:

• The creation, governance, usage, and design of ENA, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created ENA.
• The supply, demand, maturity, utility, and liquidity of ENA.
• Material technical risks associated with ENA, including any code defects, security breaches and other threats concerning ENA and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with ENA, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ENA, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to ENA about whether ENA, or generally about whether the type of crypto asset, is a security and/or derivative.