What is Helium?

Helium (HNT) is a decentralized blockchain network that provides wireless connectivity for Internet of Things (IoT) devices. Launched in 2019, it enables a peer-to-peer wireless infrastructure through Hotspots—physical devices that serve as network nodes and miners. These Hotspots create network coverage for IoT devices and validate network security. Operators earn Helium's native cryptocurrency, HNT, as rewards for supporting the network.

In April 2023, Helium transitioned to the Solana blockchain to improve scalability, reliability, and performance. This migration leverages Solana's high throughput and robust ecosystem, enabling Helium to expand its support for IoT applications and mobile networks. By integrating with Solana, Helium benefits from faster transactions, enhanced security, and reduced costs, advancing its mission to provide decentralized, accessible wireless connectivity.

What is HNT?

HNT is the native cryptocurrency of the Helium Network, now operating on the Solana blockchain. It incentivizes participants to deploy and maintain Hotspots that deliver wireless coverage and transmit data for IoT devices. HNT has a fixed supply of 223 million tokens and follows a two-year halving schedule to manage supply and maintain scarcity.

The token distribution supports key aspects of the network, including rewards for data transfer, infrastructure maintenance, and ecosystem development. This economic model promotes the growth of a decentralized, peer-to-peer wireless network, providing scalable and secure connectivity solutions for diverse IoT applications.

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

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

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

Like all other crypto assets, there are some general risks to investing in HNT. 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 HNT. 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 16, 2024