Don’t fret. We’ve compiled a FAQ for you below—dive in and explore.
Avalanche is a decentralized, open-source blockchain with smart contract functionality. It has gotten a lot of traction due to its high speed and low costs. The protocol is run and maintained by the Ava Labs team.
The Avalanche tokens are also called AVAX. AVAX can be used for conducting transactions, staking in the ecosystem, and paying the transaction fees. All transaction fees in Avalanche are burned, which adds a deflationary mechanic to AVAX.
You can store AVAX tokens in your CoinSmart account.
AVAX uses a variation of the proof-of-stake (PoS). Staking AVAX tokens is crucial in participating in network governance and block validation. Avalanche is well-known for combining Nakamoto consensus and Classical consensus to increase scalability without compromising on decentralization.
Avalanche is run and maintained by the Ava Labs team. Ava Labs has offices in New York City and Miami and aims to create a frictionless world by disrupting global finance the way we know it. Led by Emin Gun Sirer, a former professor at Cornell, the team has collective experience from leading Fortune 500 finance and tech companies.
Most recent update: October 28th, 2022
This overview provides a summary of certain risks involved trading any crypto asset and is not exhaustive. Investors are encouraged to conduct their own research prior to trading any crypto asset.
No securities regulatory authority has expressed an opinion about the Crypto Contracts or Avalanche, made available on the CoinSmart Platform, including an opinion that Avalanche is not itself a security and/or derivative. Changes to applicable law may adversely affect the use, transfer, exchange or value of your crypto assets and such changes may be sudden and without notice.
Prior to listing Avalanche on the CoinSmart Platform, Simply Digital Technologies Inc. (SDT) conducted due diligence and determined that Avalanche is unlikely to be a security or derivative under Canadian securities legislation. Our analysis including reviewing publicly available information concerning:
Like all crypto assets, there are general risks associated with Avalanche including: volatility risk, liquidity risk, short history risk, demand risk, forking risk, code defects, regulatory risk, electronic trading risk and cyber security risk. For additional information of general risks associated with crypto assets, you may refer to the Risk Statement. Further, Avalanche’s development is centralized when compared to Bitcoin since it is dependent on the efforts of Ava Labs. Informal governance by Ava Labs may result in new changes or updates to AVAX that impact its value.
As a reminder, this Crypto Asset Statement is not intended to be exhaustive of all risks associated with trading Avalanche and we encourage you to conduct your own due diligence to determine whether trading Avalanche is right for you.
SDT is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re Simply Digital Technologies Inc. dated December 21, 2021 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Avalanche is an asset that is available to be staked. Simply put, staking is a way to use your crypto to earn more crypto. The reward is paid out in the same currency as your asset that is staked. Eg: If you staked AVAX, your reward is paid in AVAX. Reward APY after fees is up to 8.05%. Lock up period Expiry (min 2 weeks, max 1 year) and warm up period is not applicable. Minimum amount to be staked is 2000 AVAX.
To learn more about risks please refer to our Platform Risk and for fees please see our Fee Schedule