What is Ethereum Name Service (ENS)?
The Ethereum Name Service (ENS) is a distributed and open-source naming system that maps human-readable names to machine-readable identifiers like cryptocurrency addresses, metadata and content hashes. Although it is built on Ethereum, the lookup system can be deployed on private blockchains and other networks to customize complex strings of data to into readable content. Apart from the native .eth top-level domain, DNS top-level domains such as .luxe, .xyz, and .kred have been integrated into ENS.
What is ENS token?
ENS is an ERC-20 token that offers holders the right to governance participation through the ENS Decentralized Autonomous Organization (DAO). The ENS DAO follows principles set out by its constitution, a set of binding rules that determine what governance actions are legitimate for the DAO to take. By design, there is a maximum supply of 100,000,000 ENS units.
Risk statement
Before trading any crypto assets 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.
No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.
Wealthsimple has performed an assessment of whether ENS can be supported by Wealthsimple’s platform, including whether ENS is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated ENS based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of ENS, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created ENS;
- The supply, demand, maturity, utility and liquidity of ENS;
- Material technical risks associated with ENS, including any code defects, security breaches and other threats concerning ENS 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 ENS, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ENS; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether ENS, or generally about whether the type of crypto asset, is a security and/or a derivative.
Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to ENS may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support ENS.
Like all other crypto assets, there are some general risks to investing in ENS. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading ENS. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.
Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).
The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Last updated: January 1, 2024
Comments
0 comments
Please sign in to leave a comment.