Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Algorand (ALGO) 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 Capital Markets Ltd (CCML)’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare Capital Markets Ltd (CCML) has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.

Algorand, founded by Turing Award winner Silvio Micali, operates as a high-performance, carbon-neutral blockchain. Its Pure Proof of Stake (PPoS) consensus mechanism achieves security and scalability without the energy-intensive mining required by Proof of Work networks. Since 2021, Algorand has maintained a carbon-negative status through its partnership with ClimateTrade and the implementation of a "sustainability oracle" that offsets the network’s minimal carbon footprint in real-time.

As with all assets, investing in Algorand is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to Algorand 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 Algorand.

Algorand is a blockchain network that does not rely on any other network for its stability and security. Consequently, investors must be confident in Algorand’s risk management and security strategy.

Most blockchain networks reward or incentivize desired behaviour, and penalize undesirable behaviour. Algorand utilizes a Pure Proof of Stake (PPoS) consensus mechanism designed to minimize the risk of network partitioning or sybil attacks. To address historical concerns regarding node participation, the network transitioned from passive participation rewards to a Community Governance model. Furthermore, following protocol upgrades, Algorand introduced direct incentivization for block producers. These rewards are designed to encourage high-quality node operation and ensure network decentralization, aligning Algorand’s economic model with other leading Layer 1 protocols that reward active validators for securing the network.