What is ANKR?
The ANKR token is the native utility and governance token for the ANKR network. ANKR tokens are used to pay for services within the ANKR ecosystem. The current Ankr network is built on three key principles: Chain neutrality, Full decentralization and web 3.0 infrastructure. The Ankr (ANKR) crypto platform comprises a suite of tools that streamline access to the decentralized web. Ankr’s product offerings can broadly be categorized into two main functions:
- Node Infrastructure: Ankr users can deploy dedicated validator and developer nodes, access application programming interface (API) endpoints, and participate in staking on Ethereum 2.0 (Eth2) and Binance Smart Chain (BSM), with plans for future integrations. The Ankr platform aims to eliminate barriers to entry by providing pre-built infrastructure that serves the diverse needs of Web3 stakeholders.
- StakeFi : Ankr also attempts to simplify the onboarding process for individuals looking to stake tokens on various blockchains and help validate transactions. StakeFI, integrates the financial system into web3 infrastructure and developer projects running on this infrastructure make the economy productive.
On the technical side ANKR is an ERC-20 governance token that operates on the Ethereum (ETH) blockchain. The total supply of ANKR is currently fixed at 14 million tokens. Previously approximately 2% of Ankr tokens have been burned with no further burning capabilities anticipated in the future.
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 ANKR can be supported by Wealthsimple’s platform, including whether ANKR is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated ANKR based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of ANKR, 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 ANKR;
- The supply, demand, maturity, utility and liquidity of ANKR;
- Material technical risks associated with ANKR, including any code defects, security breaches and other threats concerning ANKR 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 ANKR, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ANKR; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether ANKR, 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 ANKR may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support ANKR.
Like all other crypto assets, there are some general risks to investing in ANKR. 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.
Additional Risks / Information
ANKR, is used as a medium of payment by those using node resources and a means of rewarding those who provide the node. ANKR therefore has a use other than investment and speculation based on the efforts of Ankr Inc. There is some concentration risk with the dependence on Ankr Inc. as the primary provider of nodes. However, Ankr Inc. has stated that it is increasingly decentralizing the protocol’s services by adding independent node providers. This will require further monitoring to ensure Ankr Inc is heading towards increased decentralization.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading ANKR. 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