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The information contained in this Crypto Asset Statement was last updated on March 15, 2024.

No securities regulatory authority in Canada has expressed an opinion about My Neighbor Alice 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 My Neighbor Alice 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 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 My Neighbor Alice 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

My Neighbor Alice is a farming themed virtual world, play-to-earn game built using Chromia’s infrastructure.  Players can own virtual islands and assets in the form of NFTs, and players are able to make real world money by acquiring desirable lands or assets in Alice’s world.  My Neighbor Alice was founded by Antler Interactive, a Swedish video game company previously active in the mobile game genre.

My Neighbor Alice’s token, ALICE, is the in-game currency used to purchase virtual assets and islands, as well as act as a revenue stream for selling assets, or charging other players for services that players render in-game.

Risks of My Neighbor Alice 

Like an investment in other crypto assets, an investment in My Neighbor Alice 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 My Neighbor Alice 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 My Neighbor Alice.

As “GameFi” coins/tokens (such as My Neighbor Alice) are generally crypto assets whose primary or sometimes sole functionality serves as a type of payment or other utility specifically related to a particular decentralized game or a particular ecosystem of decentralized games, aside from the typical risks associated with crypto assets such as security, liquidity, or price volatility, they carry the extra risk of being inextricably associated with a particular game or ecosystem of games.  Whether a game becomes more or less popular over time and its corresponding user base increases or decreases is highly unpredictable as such trends often occur based on sentiment and general pop culture or interest.  If that particular game or ecosystem of games becomes less popular over time and experiences a decline in users or in-game transactions, the demand for My Neighbor Alice could drop substantially which could cause significant declines in the value of My Neighbor Alice or may even cause the value of My Neighbor Alice to go to zero.

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 My Neighbor Alice.  We encourage all Newton users to perform their own due diligence to assess the risks associated with My Neighbor Alice and to determine whether this level of risk is acceptable to them.  Neither My Neighbor Alice nor Newton guarantees the value of My Neighbor Alice, and holders of My Neighbor Alice will not have any recourse to My Neighbor Alice or Newton if the value of My Neighbor Alice declines for any reason whatsoever.

Newton’s Evaluation Process

Newton has reviewed and assessed My Neighbor Alice prior to making it available on the Newton Platform and has concluded that My Neighbor Alice 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 My Neighbor Alice 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 My Neighbor Alice, including an opinion that My Neighbor Alice is not itself a security and/or derivative.

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

• The creation, governance, usage, and design of My Neighbor Alice, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created My Neighbor Alice.
• The supply, demand, maturity, utility, and liquidity of My Neighbor Alice.
• Material technical risks associated with My Neighbor Alice, including any code defects, security breaches and other threats concerning My Neighbor Alice 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 My Neighbor Alice, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of My Neighbor Alice, 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 My Neighbor Alice about whether My Neighbor Alice, or generally about whether the type of crypto asset, is a security and/or derivative.

A link to the My Neighbor Alice White Paper is available at the following link.