The information contained in this Crypto Asset Statement was last updated on August 15, 2022.
No securities regulatory authority in Canada has expressed an opinion about Ankr 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 Ankr 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 Re Newton Crypto Ltd. dated August 15, 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 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 Ankr 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
Ankr is a decentralized blockchain infrastructure provider designed to improve blockchain interoperability and facilitate growth in the multichain space. Ankr hosts an array of over 50 Proof-of-Stake (PoS) nodes that allows developers to access them using traditional APIs, as well as a decentralized network of RPC nodes and blockchain scanners that allow developers to verify information across those nodes. Ankr also has a decentralized, non-custodial Earn product that allows users to connect to whichever PoS protocol Ankr supports for staking services.* Ankr was founded by Chandler Song, and Ryan Fang, who were featured on the Forbes 30 under 30 list, and are both graduates of UC Berkeley’s Blockchain program.
Ankr’s token, ANKR, is used as a utility token to make payments across the Ankr networks, in exchange for querying and making use of their APIs and RPC nodes.
* Currently, Newton does not provide its users with the ability to participate in the staking functions of ANKR.
Risks of Ankr
Like an investment in other crypto assets, an investment in Ankr 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. In terms of specific risks, as Ankr is one of the longest-standing crypto assets and its community base is widely decentralized, there is no central working group or authority to disclose material information to the public regarding Ankr.
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 Ankr. We encourage all Newton users to perform their own due diligence to assess the risks associated with Ankr and to determine whether this level of risk is acceptable to them. Neither Ankr nor Newton guarantees the value of Ankr, and holders of Ankr will not have any recourse to Ankr or Newton if the value of Ankr declines for any reason whatsoever.
Newton’s Evaluation Process
Newton has reviewed and assessed Ankr prior to making it available on the Newton Platform and has concluded that Ankr 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 Ankr 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 Ankr, including an opinion that Ankr is not itself a security and/or derivative.
Based on publicly available information Newton has reviewed Ankr, including, but not limited to, a review of the following:
- The creation, governance, usage, and design of Ankr, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created Ankr.
- The supply, demand, maturity, utility, and liquidity of Ankr.
- Material technical risks associated with Ankr, including any code defects, security breaches and other threats concerning Ankr 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 Ankr, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of Ankr, 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 Ankr about whether Ankr, or generally about whether the type of crypto asset, is a security and/or derivative.
A link to the Ankr White Paper is available at the following link.