What is Sonic? (previously Fantom)
Sonic Network is a high-performance Layer 1 blockchain that evolved from the Fantom (FTM) ecosystem. In December 2024, the Fantom Foundation initiated a migration from the Fantom Opera network to the newly developed Sonic network, introducing the native S token. This transition allows FTM holders to upgrade their tokens to S on a 1:1 basis using the upgrade portal provided by Sonic Labs.
The migration to Sonic aims to enhance blockchain performance and scalability, addressing limitations present in the previous Fantom Opera network. The Sonic network offers improved transaction speeds and reduced storage requirements, positioning it as a next-generation blockchain platform. The Fantom Foundation has indicated that the FTM token and the Fantom Opera network will continue to operate for the foreseeable future, providing flexibility for users during the transition period.
What is S?
The S token is the native utility token of the Sonic Network, serving as the primary medium for transaction fees, staking, and governance within the ecosystem. Users utilize S tokens to pay for transactions, participate in network governance decisions, and stake tokens to support network security and earn rewards. The total supply of S tokens is capped at ~3.1 billion, with a current circulating supply of ~2.8 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.
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 S can be supported by Wealthsimple's platform, including whether S is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated S based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of S, 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 S;
- The supply, demand, maturity, utility and liquidity of S;
- Material technical risks associated with S, including any code defects, security breaches and other threats concerning S 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 S, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of S; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether S, 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 S may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support S.
Like all other crypto assets, there are some general risks to investing in S. 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 S. 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 30, 2025
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