Crossing the Divide: Navigating Cryptocurrency ETFs & the Future of Finance https://algorithm.xiimm.net/phpbb/viewtopic.php?p=4322#p4322
Wednesday, August 30, 2023
A really well done informative description & legal agreement of ADA by NDAX - A Canadian Exchange. Bravo!
PLEASE READ THIS CAREFULLY. BY PROCEEDING TO TRANSACT IN BTC, YOU ACKNOWLEDGE AND ACCEPT THE STATEMENTS SET OUT BELOW.
About this Summary
NDAX Canada Inc. (“NDAX”, “we” and “our”) believes that our users should understand the crypto assets that they are able to trade and stake using our crypto trading platform (the “Platform”). One of the crypto assets we offer on the Platform is ADA. We created this summary to help you understand the basics of ADA as well as some of the risks involved in trading in ADA. While we tried to describe the key features of ADA, this summary isn’t meant to tell you everything you’d want to know before investing in ADA. You should also do your own research on ADA to make sure you are comfortable investing in it.
Description of ADA
History of ADA
Cardano is widely termed as a third generation blockchain because it was built to address the scalability problems of Bitcoin (first-generation blockchain) and Ethereum (second-generation blockchain).
In 2015, Charles Hoskinson, an early Ethereum and BitShares co-founder, started developing the Cardano platform. The project was officially launched in 2017 under the ‘Byron’ bootstrap phase and raised more than $60 million in an ICO. Currently, Cardano is being developed by three different organizations:
- Cardano Foundation oversees the development of the Cardano community.
- Input Output Hong Kong (IOHK) is responsible for developing Cardano blockchain and its application tools.
- EMURGO promotes the commercial applications of Cardano.
What Cardano is used for
The Cardano blockchain is still in its early stages of development and, as such, it has not been used yet. In the future, Cardano can be used for the execution of smart contracts that are not only secure, but immutable too. Cardano also has ambitious goals in terms of scalability and intends to process millions of transactions per second.
Cardano is expanding its efforts by partnering with IBM to work on a software distribution project and PwC to generate a commercial strategy. Cardano has also signed a memorandum of understanding with the US government to use the platform in the Agri-tech sector sometime in the future.
How Cardano works
Cardano, the blockchain network, consists of two layers. The Cardano Settlement Layer settles all the transactions using ADA, and the other one, the Control Layer, hosts the smart contracts. At the heart of Cardano is Ouroboros, a consensus protocol developed in-house by the IOHK team.
The platform will roll out in five different stages: Byron, Shelley, Goguen, Basho, and Voltaire. The Byron phase arrived in 2017 with the Cardano blockchain’s mainnet launch that only supported ADA transactions. Shelley was launched in August 2020 and brought proof-of-staking to life. The other three stages will be launched in the near future.
ADA is the native cryptocurrency of the Cardano network. It has a total supply of ADA of 45 billion coins. With Shelley’s launch, validators on the network can stake ADA to help mint new blocks on the Cardano network.
Certain Staking Services Terms Applicable to ADA
You can cancel your opt-in to the staking services for any crypto-asset within the first four hours of your initial opt-in.
In addition to the other staking terms that you agree to when you opt-in to our staking services, please consult the table below for additional terms that currently apply to the staking service for ADA at this time. Note that the annual percentage yield (“APY”) is an estimate, and terms are subject to change. All terms in effect are maintained on our website.
Crypto Asset
ADA
Redemption
Instant Redemption or Standard Redemption (1 day)
Payout Frequency
Daily
Current APY
3-6%
NDAX Admin Fee\*
20%
Bonding Period
1 day
Unbonding
None
Example: If you have 100 coins staked at 3% APY, the gross reward will be 3 coins for the year. NDAX will earn a fee of 20%, in this case 0.6 coins, and 2.4 coins will be credited to your account based on the payout frequency.
For purposes of the above table:
“Instant Redemption” may be available for flexible plans on a first come, first serve basis, subject to availability. If elected, your opt-out is effective immediately, and you are not entitled to any rewards generated within the reward period. This is subject to NDAX liquidity management provisions to fulfill client instructions to sell or transfer crypto assets prior to the Unbonding Period.
“Standard Redemption” means that your opt-out is delayed for the period of time indicated in the above table, but you collect any rewards generated up to and including generated within the reward period.”
“NDAX Admin Fee” refers to the percentage fee on the total amount of the reward generated through staking.
“Bonding Period” refers to the amount of time it takes before you begin to generate staking rewards for that crypto asset from the time you have started staking.
“Unbounding Period” refers to the amount of time you need to hold your eligible staked crypto assets after opting-in to the staking service before you are able to opt-out.
Risks
Before entering into an agreement (a “Crypto Contract”) with NDAX to buy or sell any crypto assets through the Platform, 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.
Like other crypto assets, there are some general risks associated with investing in ADA. Each of these risks are described in more detail in the Risk Statement provided to you at the time that you open your account with us and is also available online on the NDAX website and app. You should review the Risk Statement.
In addition to the general risks set out in the Risk Statement, we also point out other specific risks to ADA below.
Concentration of ADA Holdings
Approximately 20% of the ADA ownership is held by the Cardano Foundation, IOHK and EMURGO. As a result, these entities control a significant vote related to planning and decision making of the foundation. A high level of ownership by these entities may adversely affect the price of ADA itself.
While we have tried to describe the key risks associated with ADA here and in our Risk Statement, we emphasize that this Crypto Asset Statement is not exhaustive of all of the risks associated with trading in ADA. You should also do your own research on ADA to make sure you are comfortable investing in such a crypto asset.
Risks Specific to Staking ADA
In addition to the risks described above, prior to staking ADA, you acknowledge that:
- given the volatility of crypto assets, the value of your staked ADA when you sell or withdraw it, and the value of any reward you earn through staking, may be significantly less than their current value;
- there is no guarantee that you will receive any reward on staked ADA;
- past rewards are not indicative of expected future rewards;
- the rewards you are entitled to may be changed at the discretion of NDAX;
- you may lose all or a portion of your staked ADA if the validator does not perform as required by the network; and
- additional risks can be found in the Risk Statement.
Regulatory Information
NDAX is offering Crypto Contracts in accordance with the terms of a pre-registration undertaking dated March 23, 2023 that we entered into with the Canadian securities regulators, while our application for registration in certain Canadian jurisdiction is reviewed. Please note that NDAX is not currently registered under securities or derivatives legislation of Canada and there is no guarantee that registration will be granted.
The statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement.
Prior to offering a Crypto Contract on ADA, NDAX assesses whether ADA is a security and/or a derivative under the securities and derivatives laws of Canada. NDAX’s assessment includes a review of the history of the ADA (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding ADA. Based on its assessment, NDAX concluded that ADA is not a security or a derivative. However, there is a risk that this conclusion could change in the future. In that case, NDAX may be required to halt or withdraw ADA from trading on the Platform and stop any future trading of Crypto Contracts based on ADA, and users holding ADA may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in ADA will be notified via the Platform or other electronic means and advised of the options available to them and any applicable period to sell or withdraw their positions in ADA.
No Canadian securities regulatory authority has expressed an opinion about ADA, including an opinion that ADA is not itself a security and/or derivative.
🔥 3 days until the Alotta Money Exhibit & Charity Auction: featuring Pak, Hackatao, José Delbo, and more
Get ready for the upcoming Alotta Money Tribute Exhibit & Auction, which is set to bring together the biggest-name creators and exciting up-and-coming artists in a groundbreaking fusion of art and philanthropy.
This exhibit stands as both a tribute to the legacy of the great Alotta Money and to raise funds for the cancer charity Maggie’s.
Curated in partnership with Trevor Jones and voted on by the community, the exhibit will showcase a selection of 30 esteemed artists, including Pak, Hackatao, José Delbo, Bryan Brinkman, and many more.
To ensure you don't miss this opportunity, add the event to your calendar.
The auction will take place both on MakersPlace from September 2–8, 2023, and will be showcased at the Trevor Jones Second Annual Bitcoin Angel Castle Party in the Château de Vallery near Paris, France for two unforgettable nights, September 3–5, 2023.
By participating in this auction, you will support a noble cause while adding beautiful artwork from some of the most exciting and celebrated names in digital art to your collection. We invite you to join us in this ground-breaking digital celebration of creativity and philanthropy.
WEEKLY CRYPTO REVIEW: LITECOIN UNDER FOCUS
Fellow Traders, It's been some time ooo. How is trading?
Litecoin fell 19.6% over the past week between 21st to 26th August, 2023. Prior the bearish trend, Litecoin’s price dropped 24% on August 17, hitting a yearly low before rebounding slightly.
Bitcoin and Ethereum also experienced declines of a similar magnitude.
Reasons for the crypto market’s decline
(1) The strengthening of the US dollar. (2) Reports of a sizable crypto sell-off by SpaceX. (3) Rising US government bond yields.
Why you should trade Litecoin now.
(1) Following the halving event, many bearish signals emerged within the Litecoin network.
(2) In July 2021, LTC’s yearly low took the number of long-term holders to 100,000, causing a 32% rebound by year-end.
(3) In a 2022 low, the number of long-term holders grew to 870,000, ultimately leading to a 60% rebound.
Litecoin’s long-term outlook is positive due to its global popularity, sizable community and the advantages the network offers, like speedy and affordable transactions.
Considering the above, wise traders now focus their attention on buying LITECOIN at the current low-value bearish point for a higher profit from imminent upsurge in the nearest future.
Trade Litecoin in Forex mode on Olymp Trade.
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