What is Worldcoin?

Worldcoin (WLD) is a blockchain-based project designed to facilitate a global digital identity and financial system. It combines decentralized technology with biometric verification, using a unique device called the Orb to verify individuals' identities through iris scans. This process enables the creation of a "proof of personhood" system, ensuring that each user is unique without compromising privacy. The project aims to address challenges in online identity verification and equitable access to financial services by linking digital identity to a cryptocurrency ecosystem.

What is WLD?

Worldcoin (WLD) is an ERC-20 token on the Ethereum network, designed primarily for governance within the Worldcoin ecosystem. As the native token of the Worldcoin project, it allows holders to participate in key decisions regarding the development and operations of the platform. The token plays a central role in the decentralized governance model, allowing stakeholders to vote on proposals that impact the network's future. The total supply of WLD is capped at 10 billion tokens, with a significant portion allocated to the community to incentivize participation and adoption.

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 WLD can be supported by Wealthsimple’s platform, including whether WLD is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

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

• The creation, governance, usage and design of WLD, 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 WLD;
• The supply, demand, maturity, utility and liquidity of WLD;
• Material technical risks associated with WLD, including any code defects, security breaches and other threats concerning WLD 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 WLD, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of WLD; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether WLD, 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 WLD may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support WLD.

Like all other crypto assets, there are some general risks to investing in WLD. 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 WLD. 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: December 6, 2024