Coinsquare Capital Markets Inc. (“Bitbuy”) is offering crypto contracts to purchase and sell Dogecoin in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the exemptive relief decision dated October 12, 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 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.

Dogecoin is a well-known cryptocurrency that trades using the ticker symbol DOGE. It uses the Scrypt algorithm and Proof of Work consensus for mining new coins, similar to Bitcoin mining. Dogecoin was launched in 2013 by Jackson Palmer and Billy Markus, originally conceived as a satirical commentary on the cryptocurrency craze of the time. While it began as a "joke" coin, it has since evolved into a functional peer-to-peer digital currency used for tipping and small transactions.However, Dogecoin gained a cult following in various internet groups, which caused its popularity to grow. Dogecoin achieved massive mainstream visibility and a multi-billion dollar market capitalization during the 2021 market cycle, solidifying its position as the pioneer of the "memecoin" sector. It remains one of the largest cryptocurrencies by market value, supported by a persistent global community. Elon Musk became a notable believer and promoter of Dogecoin, frequently tweeting about the coin and adding it as an accepted form of payment for Tesla merchandise. Dogecoin features the face of the Shiba Inu dog from the DOGE meme as its logo.

As with all assets, investing in Dogecoin 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 Dogecoin 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 Dogecoin.

Dogecoin is one of many digital assets that could be classified as a memecoin. Memecoins follow internet trends and are susceptible to volatility influenced by social media activity, online jokes, and adoption or comments by celebrities or public figures. On multiple instances, Dogecoin has seen very fast and very significant increases in its market capitalization as its meme status grew. However, as with typical internet memes, trends may be fleeting and those steep increases sometimes level off very quickly as meme-followers lost interest.

Elon Musk (CEO of Tesla, SpaceX, and owner of X) has been a vocal supporter of Dogecoin for several years. His influence has expanded beyond social media commentary; for instance, Tesla currently accepts Dogecoin for specific merchandise, and Musk has frequently discussed the potential for broader utility within his various business ventures. Elon Musk primarily utilizes his platform, X (formerly Twitter), to communicate his views on digital assets. His posts regarding Dogecoin often result in immediate and high levels of market volatility, as they are closely monitored by both retail and institutional traders. Historical data illustrates this influence: in December 2021, the price of DOGE spiked by 20% following his announcement that Tesla would accept the coin for merchandise. Similarly, in June 2022, comments made at the Qatar Economic Forum led to a 13% price increase within 24 hours. More recently, Musk’s rebranding of Twitter to X and continued hints at integrating DOGE into future payment systems have continued to drive speculative price action. While it appears that Elon’s comments tend to have a positive impact on Dogecoin’s market capitalization, investors should weigh the potential impact of negative comments should Elon Musk’s sentiments towards Dogecoin ever change.