What is BAND?
BAND is the native token of BandChain. Originally created as an ERC-20 token, BAND is now additionally available as a native token on the BandChain. Band Protocol is a decentralized cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. The BAND token is used to secure and power the decentralized oracle network.
BandChain is an independent Delegated Proof-of-Stake (DPoS) blockchain built using the Cosmos SDK. It is custom-built for oracle computations including settlement, data sourcing, and aggregation. Validators stake the network's native token, BAND, to secure the network and earn a portion of the fees generated by the protocol.
Band Protocol was created to solve the problem of smart contract applications lacking access to real-world data. It also intends to provide reliable transaction speed and scalability, cross-chain compatibility, and data flexibility. Originally released on the Ethereum blockchain in 2019, Band Protocol eventually built its own blockchain using the Cosmos SDK to relay data across different blockchains.
BAND has a fixed supply of 100,000,000 units with burning capabilities. Note that Wealthsimple only supports the ERC-20 BAND token on the Ethereum network, and not the native BandChain mainnet coin.
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 BAND can be supported by Wealthsimple’s platform, including whether BAND is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated BAND based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of BAND, 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 BAND;
- The supply, demand, maturity, utility and liquidity of BAND;
- Material technical risks associated with BAND, including any code defects, security breaches and other threats concerning BAND 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 BAND, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of BAND; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether BAND, 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 BAND may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support BAND.
Like all other crypto assets, there are some general risks to investing in BAND. 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
Wealthsimple only supports the ERC-20 version of BAND and does not support the version of BAND available on the BandChain blockchain. Wealthsimple cannot bridge or convert the ERC-20 version of BAND to the token on BandChain. If you wish to bridge or convert your ERC-20 version of BAND, you must first withdraw it and then bridge or convert it using tools provided by the platform or protocol, which may subject you to additional risks.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading BAND. 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