Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Floki Inu (FLOKI) 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.

Floki Inu was created in honour of Elon Musk’s Shiba Inu dog, who is named Floki. While it is another installation in the ever-growing collection of dog-based meme coins, FLOKI is also the utility token of the Floki Inu ecosystem. The Floki Inu ecosystem consists of a play-to-earn NFT-based game (Valhalla), a tokenization platform (TokenFi), an educational platform (University of Floki), NFT collections, prepaid virtual cards, a DeFi locker protocol (FlokiFi Locker), and a staking program. Floki Inu’s community has made news for undertaking charitable projects; to date the community has built schools in Nigeria, Laos, Ghana and Guatemala. Note that CCML only supports FLOKI as an ERC20 token on the Ethereum Mainnet.

As with all assets, investing in FLOKI is not without some general risks. Many of these risks are identified and explained in our Risk Statement. All of the risks of trading and staking crypto that are identified and explained in our Risk Statement apply to FLOKI.

In addition to the general risks, we outline some risks that are specific to FLOKI 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 FLOKI.

FLOKI reliance on the Ethereum Network As FLOKI is an ERC-20 token on the Ethereum network, it is highly dependent on the continued stability of that network. Any fundamental issues in the Ethereum network may impact FLOKI’s smart contract or token value. Investors should consider this dependency when evaluating Floki Inu. After its initial release as an ERC20 token, FLOKI was also introduced on BSC network, however CCML only recognized the ERC20 token as the true FLOKI token and consequently CCML only supports FLOKI on Ethereum Mainnet.

Floki Inu is one of many digital assets that are often classified as memecoins. 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. However, as with typical internet memes, trends may be fleeting and any steep increases could be met with rapid pullbacks as meme-followers lose interest.

FLOKI transactions on the Ethereum and BNB Smart Chain networks are subject to a 0.3% taxation enforced by the smart contract. This tax is directed to the Floki treasury to fund community projects, ecosystem development, and marketing efforts aimed at increasing adoption. CCML does not factor this tax into its pricing of FLOKI, and instead pays the 0.3% tax on behalf of its clients.

While the project has expanded its technical documentation via its documentation portal, Floki Inu still maintains a degree of anonymity regarding its core development team. The project operates a staking program where users earn TokenFi (TOKEN) rewards, though the Hong Kong Securities and Futures Commission (SFC) has previously issued warnings regarding the Floki Staking Program and TokenFi Staking Program due to high annualized return targets and their status as unauthorized investment products in that jurisdiction. Floki has transitioned toward a Decentralized Autonomous Organization (DAO) structure to empower its community to vote on key ecosystem decisions, such as token burns. Investors should be aware of the evolving nature of the project’s governance and the regulatory scrutiny regarding its yield-bearing products when evaluating FLOKI.