What is CHR?
Chromia is a blockchain platform for decentralized applications designed to achieve three goals: 1) allow decentralized applications (dApps) to scale to millions of users, 2) improve the user experience of dApps to match those of centralized applications, and 3) create familiar paradigms that allow developers to build secure applications.
Chromia was designed by ChromaWay to be an Ethereum Virtual Machine compatible Layer-2 solution for Ethereum and the Binance Smart Chain. It stores application data and ensures that data additions, updates and transformations are authorized and consistent with the application’s rules. Each dApp built on Chromia is its own blockchain, and throughput can be scaled by increasing the number of nodes in operation.
Chroma (CHR) is an ERC-20 token, and is primarily Chromia's native unit of account and utility with a total supply of 1,000,000,000 CHR. The CHR token has four main uses in the Chromia ecosystem: 1) it is considered the standard currency in Chromia - dApps can use CHR to collect fees or use it as a reserve currency to peg its token, 2) it is used by dApps to pay hosting fees, which rewards Chromia node operators, 3) the token provides an incentive to providers to not collude, as they all have a stake in the ecosystem, and 4) Chromia has several special CHR accounts that are used for system-wide purposes unique to its ecosystem. The Chromia Blockchain is a general-purpose chain, however, with its emphasis on high throughput and scalability, Chromia seeks to become the blockchain of choice for Massive Multiplayer Online Games (MMOGs).
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 CHR can be supported by Wealthsimple’s platform, including whether CHR is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated CHR based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of CHR, 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 CHR;
- The supply, demand, maturity, utility and liquidity of CHR;
- Material technical risks associated with CHR, including any code defects, security breaches and other threats concerning CHR 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 CHR, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of CHR; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether CHR, 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 CHR may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support CHR.
Like all other crypto assets, there are some general risks to investing in CHR. 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 CHR. 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