About this Summary

Ndax Canada Inc. (“Ndax”, “we” and “our”) believes that our users should understand the crypto assets that they are able to trade and stake using our crypto trading platform (the “Platform”). One of the crypto assets we offer on the Platform is SHIB. We created this summary to help you understand the basics of SHIB as well as some of the risks involved in trading in SHIB. While we tried to describe the key features of SHIB, this summary isn’t meant to tell you everything you’d want to know before investing in SHIB. You should also do your own research on SHIB to make sure you are comfortable investing in it.

Description of SHIB

History of SHIB

Shiba Inu was conceptualized and created by an anonymous person(s), Ryoshi, who believed that the power of collective decentralization could surpass the age-old centralized institutions. From the very early days of the coin, the creators became known as the Shib Army, and this soon became the buzzword for the 120,000 SHIB fans who believed in the coin’s potential. Shiba Inu started from the ground up with an enthusiastic aim whose focus was transfixed on creating the best decentralized ecosystem on the planet.

With this vision, the Shiba Inu token was launched in August 2020 as a part of a three-tone ecosystem.

What is SHIB used for

As the main utility token of the ShibSwap ecosystem, Shiba Inu (SHIB) can be used to provide liquidity to the DEX’s pools, or it can be traded and staked for rewards. It is also used as a payment method by some sports teams and theatres.

Shiba Inu has a total supply of 1 quadrillion tokens. 50% of the total SHIB was used to provide liquidity to Uniswap, and the remaining 50% was burned to Ethereum’s co-founder Vitalik Buterin’s wallet. Vitalik used over 50 Trillion SHIB worth $1 billion to donate to India’s COVID-19 relief measures.

How SHIB works

Shiba Inu and its anchoring DEX ShibSwap are launched on the Ethereum network and hence use Ethereum’s proof-of-work consensus to process transactions. The token is part of a three-token ecosystem containing $BONE and $LEASH tokens. The ecosystem is anchored by a decentralized exchange (DEX) called ShibSwap that allows users to trade, farm, and stake tokens. Its utility in this ecosystem differentiates Shiba Inu from DogeCoin.

Holders of Shiba Inu can stake the tokens on the DEX to receive xSHIB liquidity provider (LP) tokens and staking rewards in BONE. $LEASH is the second of the ecosystem, and its tokenomics contradict those of Shiba Inu. LEASH has a total supply of 107,647 tokens. $LEASH and $BONE can also be staked in their respective pools to receive LP tokens and rewards.

Risks

Before entering into an agreement (a “Crypto Contract”) with Ndax to buy or sell any crypto assets through the Platform, it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Like other crypto assets, there are some general risks associated with investing in SHIB. Each of these risks is described in more detail in the Risk Statement provided to you at the time that you open your account with us and is also available online on the Ndax website and app. You should review the Risk Statement.

While we have tried to describe the key risks associated with SHIB here and in our Risk Statement, we emphasize that this Crypto Asset Statement is not exhaustive of all of the risks associated with trading in SHIB. You should also do your own research on SHIB to make sure you are comfortable investing in such a crypto asset.

Regulatory Information  

Ndax is offering Crypto Contracts in accordance with the terms of a pre-registration undertaking dated March 23, 2023, that we entered into with the Canadian securities regulators, while our application for registration in certain Canadian jurisdictions is reviewed. Please note that Ndax is not currently registered under securities or derivatives legislation of Canada and there is no guarantee that registration will be granted.

The statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement.

Prior to offering a Crypto Contract on SHIB, Ndax assesses whether SHIB is a security and/or a derivative under the securities and derivatives laws of Canada. Ndax’s assessment includes a review of the history of the SHIB (such as how it was created and its governance structure), its characteristics, its market capitalization, and any regulatory concerns regarding SHIB. Based on its assessment, Ndax concluded that SHIB is not a security or a derivative. However, there is a risk that this conclusion could change in the future. In that case, Ndax may be required to halt or withdraw SHIB from trading on the Platform and stop any future trading of Crypto Contracts based on SHIB, and users holding SHIB may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in SHIB will be notified via the Platform or other electronic means and advised of the options available to them and any applicable period to sell or withdraw their positions in SHIB.

No Canadian securities regulatory authority has expressed an opinion about SHIB, including an opinion that SHIB is not itself a security and/or derivative.