What is Mask Network (MASK)?

Mask Network is a blockchain-powered browser extension that brings decentralized features to social media platforms. It enables users to securely share encrypted messages, files, and conduct cryptocurrency transactions within their preferred social media networks, allowing them to regain control over their data and privacy. With support for decentralized finance transactions and decentralized identity solutions, Mask Network enhances security and user autonomy, offering a seamless integration of blockchain technology into everyday social media interactions. 

What is MASK token?

MASK is an ERC-20 governance token on the Ethereum network that allows holders to participate in proposals to the Mask DAO. The Mask DAO governs the Mask Network, and holders may vote on decisions that impact the Mask Network and ecosystem. There is a maximum supply of 100 million units of MASK.

How does MASK compare to Bitcoin?

MASK differs from Bitcoin in a few important ways. First, Bitcoin is a “coin” and MASK is a “token.” That is because Bitcoin powers the Bitcoin blockchain, and it is mined by a decentralized network of computers that solve complicated math puzzles to verify transactions.

By contrast, MASK is a token that runs on the Ethereum blockchain. On Ethereum, ETH is staked to process transactions on the network, including MASK transactions. MASK is what is known as an ERC-20 token, the name applied to the generic token standard for the Ethereum blockchain.

Being an ERC-20 token has perks. Blockchains aren’t great at speaking to each other—you can’t get an Ethereum contract to work with a Bitcoin smart contract without some complicated engineering. However, it’s very easy for ERC-20 tokens to speak to one another, which means that MASK can be used in most other decentralized finance applications.

Unlike Bitcoin, MASK is a governance token. While, like Bitcoin, MASK can be used as a means of payment or a store of value, its market price may be very volatile and so it may not be useful for payments or storing value.

Finally, MASK’s market capitalization is smaller than Bitcoin’s. As of May 2023, MASK’s market capitalization was estimated to be $340 million, as compared to Bitcoin’s market capitalization of $560 billion. 

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. First and foremost:

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

Wealthsimple has performed a legal assessment of MASK prior to making it available on Wealthsimple Crypto and has concluded that MASK is not and is unlikely to be deemed a security or derivative. However, there is a risk that this conclusion could change in the future and the impact of this on an asset’s value is outlined in our Product Disclosure.

We evaluated MASK based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of MASK, 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 MASK;
• The supply, demand, maturity, utility and liquidity of MASK;
• Material technical risks associated with MASK, including any code defects, security breaches and other threats concerning MASK and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them; and
• Legal and regulatory risks associated with MASK, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of MASK.

Like all other crypto assets, there are some general risks to investing in MASK. 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. Each of these risks are described in more detail in our in-app Product Disclosure.

MASK also presents an elevated short history risk, and in contrast to networks like Bitcoin and Ethereum, where multiple parties participate in development, the Mask Network team directs ongoing development of the software underlying the MASK network.

Further, the Mask Network, and the MASK community are not under any legal or regulatory obligation to disclose material information to the public regarding their activities. Holders of MASK have no recourse to MASK or Wealthsimple if MASK declines in value for any reason.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading MASK. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

WDA is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Digital Assets Inc. dated June 18, 2021. Please be aware that 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 to a misrepresentation in this Statement.

Last updated: June 29, 2023